On Tuesday, January 19th, a member named Bobby and his co-presenter Dave, offered us with some useful information that everyone should be aware of.
Overall, it was an excellent presentation, which covered how inheritances impact SSI and SSD recipients. I found the presentation to be interesting and informative.
Inheritances, for the most part, are non-consequential for SSD recipients. SSI recipients, however, must pay the inheritance to the state to preserve their benefits. Otherwise, their benefits are lost.
The presentation also covered the payment of estate and inheritance taxes. Estate taxes (Federal and State) are paid by the estate and not the beneficiaries. Inheritance tax (State) is paid by the estate and not the beneficiary. There is no tax consequence to a recipient of an estate inheritance.
It was a new revelation to me that SSI recipients must pay the inheritance to the State in order to preserve their benefits. One way around this is to form a trust, where the trust becomes the recipient of the inheritance.
For those who may not be familiar with SSI and SSD in regards of inheritance, I would recommend doing further research to have a better understanding of this topic.
Blog posts are written by Shore House members and staff.