Do DAC benefits count as SSI? Confused about asset limits for disabled adult child benefits

DAC benefits (officially called Childhood Disability Benefits) are definitely NOT SSI. They're part of Title II (Social Security Disability Insurance) and do NOT have asset limits. Your brother can have unlimited savings, investments, or inheritance without affecting his DAC benefits. SSI is the program with the $2,000 resource limit. The only things that could affect his DAC benefits would be if he: 1. Gets married (unless to another DAC beneficiary in some cases) 2. Earns income above SGA (Substantial Gainful Activity) level, which is $1,550/month in 2025 for non-blind individuals 3. Medically recovers from his disability That inheritance won't affect his DAC benefits at all. Just make sure he's not also receiving SSI concurrently, which does have asset limits.

SSA is SO confusing!!! My daughter gets DAC benefits and we had the same question. The caseworker at our local office actually gave us WRONG info at first and scared us to death! But then a supervisor clarified that DAC is NOT SSI and has NO asset test. Your bro can have millions in the bank (I wish lol) and it doesn't affect DAC at all! BUT!!!! If he also gets SSI (some people get both), then the asset limits DO apply for that part. And the inheritance would count as a resource for SSI purposes after the month he receives it.

Ur brother is fine DAC benefits dont have asset limits like SSI does. SSI is the one with the $2000 limit not SSDI which is what DAC falls under. He can keep the money no problem

To add a bit more detail: DAC benefits (sometimes called CDB - Childhood Disability Benefits) are provided under Title II of the Social Security Act, just like retirement and regular SSDI benefits. There are no resource/asset limits for any Title II benefits. However, it's worth noting that if your brother is also receiving Medicaid through your state (not Medicare), you should check with your state Medicaid office about their resource rules, as those can sometimes be different. Some states have Medicaid programs with asset limits that apply even when SSI isn't involved. Regarding the inheritance, if it generates significant income (interest, dividends), that income might be taxable and could potentially make his Social Security benefits taxable if his total income exceeds certain thresholds. But that's a tax issue, not a benefit eligibility issue.

If hes not on SSI he should be fine with the money. DAC is like SSDI not like SSI

I spent two hours on hold with Social Security last month trying to get an answer to almost this exact question for my sister! So frustrating! I found a service called Claimyr that got me through to an actual SSA agent in under 5 minutes. Saved me hours of frustration. They have a video showing how it works at https://youtu.be/Z-BRbJw3puU - basically they call SSA for you and then connect you when they reach a rep. The agent confirmed that DAC benefits have no asset limits whatsoever. Just to be extra safe, my sister put her inheritance in an ABLE account anyway (she qualifies since her disability began before 26), which offers additional protection for Medicaid purposes in our state.

my cousins on SSDI and has like 50k in the bank so i think ur brother is fine. the 2000 limit is just for SSI which is different. i always mix them up to lol

To address your question about ABLE accounts - yes, that would be an excellent option if your state's Medicaid program does have asset limits. ABLE accounts allow disabled individuals to save up to $100,000 without affecting benefits that have resource limits. Since your brother's disability began before age 22, he definitely qualifies. The money in an ABLE account can be used for qualified disability expenses, which is a very broad category including housing, transportation, healthcare expenses, education, and basic living expenses. As for reporting the inheritance - there's no requirement to report assets/resources for DAC benefits, but if your brother is receiving any means-tested benefits (like Medicaid, SNAP, etc.), those programs might have reporting requirements.

One more thing I forgot to mention!!! If your brother works at all, make sure he stays under the SGA limit ($1,550/month in 2025)! That WILL affect DAC benefits regardless of assets. My daughter lost benefits for 3 months when she accidentally went over before we understood the rules. Such a headache getting them restarted!

Just wanted to chime in as someone who works with disability benefits - you've gotten excellent advice here! DAC benefits are absolutely NOT subject to asset limits. They're Title II benefits (like regular SSDI) and only have work-related restrictions. Since your brother inherited $15K, here's what I'd suggest: 1. Keep good records of the inheritance (bank statements, etc.) just in case 2. Consider the ABLE account option others mentioned - it's great protection for any state benefits 3. If he ever gets married, make sure to understand how that could affect his DAC benefits (it usually terminates them unless marrying another beneficiary) The confusion between SSI and SSDI/DAC rules is SO common. Even some SSA employees mix them up sometimes! Your brother can breathe easy about that inheritance.

As a newcomer to this community, I just wanted to say thank you all for this incredibly helpful discussion! I'm dealing with a similar situation with my nephew who receives DAC benefits, and I was also confused about the asset limits. Reading through all these responses has been so educational - I had no idea that DAC benefits fell under Title II (SSDI) rules rather than SSI rules. The distinction between the two programs seems to be a major source of confusion for many families. The ABLE account suggestion is particularly valuable. Even though DAC benefits don't have asset limits, it sounds like it could still provide protection for other state benefits. I'm definitely going to look into setting one up for my nephew. It's frustrating that even some SSA employees mix up these rules! Makes me feel better knowing our family isn't the only one who's been confused by this. Thanks again everyone for sharing your experiences and knowledge!

Hi everyone! I'm new to this community and just wanted to add my experience to this great discussion. My adult son receives DAC benefits and we went through this same panic about asset limits a few years ago when he received a settlement from an accident. Like others have mentioned, DAC benefits are NOT SSI and have NO asset limits whatsoever. My son can (and does) have savings accounts, investments, etc. without any impact on his monthly DAC payments. The only things that matter for DAC are the work income limits (SGA) and his medical condition continuing to meet disability criteria. What I learned that might help others: even though DAC doesn't have asset limits, I still recommend keeping good documentation of any large sums of money your family member receives (inheritance, gifts, settlements, etc.). Not because SSA requires it for DAC, but because if they ever apply for other benefits in the future that DO have asset limits, having that paper trail can be really helpful. Also seconding the ABLE account recommendations - we set one up for my son and it's been great for budgeting his disability-related expenses while providing extra protection for any state benefits he might need down the road.

Hi everyone! As someone new to this community, I'm really grateful for this incredibly detailed discussion. My sister is in a similar situation - she's 25 and receives DAC benefits, and we recently had a scare when someone at our local SSA office incorrectly told us she needed to worry about asset limits. Reading through all these responses has been such a relief! It's clear that DAC benefits fall under Title II (SSDI rules) and have NO asset restrictions. The distinction between SSI and SSDI/DAC seems to trip up so many people, including some SSA staff apparently. A few things that stood out to me: - DAC recipients can have unlimited assets without affecting their benefits - The only real concerns are staying under SGA for work income and maintaining disability status - ABLE accounts are still worth considering for protection with other state benefits - Good documentation is always smart even when not required The Claimyr service someone mentioned sounds really helpful too - I've spent hours on hold trying to get through to SSA before. It's frustrating that getting accurate information can be so difficult, but communities like this make such a difference in helping families navigate these complex systems. Thanks to everyone who shared their experiences and knowledge. It's reassuring to know we're not alone in finding all these benefit rules confusing!

As someone new to this community, I wanted to share my recent experience that might help others dealing with similar confusion. My 24-year-old daughter receives DAC benefits, and last month we had a major scare when a family friend (who works in social services but apparently with SSI cases) insisted that my daughter needed to spend down her savings to stay under $2,000 or risk losing her benefits. I'm embarrassed to admit we actually started looking into ways to "hide" her money before I found this community and did more research. Turns out DAC benefits are Title II (like regular SSDI) and have absolutely NO asset limits! My daughter can keep her savings account, the bonds her grandparents bought her, everything - without any impact on her monthly DAC payments. What really struck me reading through this discussion is how common this confusion is, even among people who work with disability benefits. The friend who scared us works with SSI recipients all day, so she automatically applied those rules to DAC without realizing they're completely different programs. I've already bookmarked several of the resources mentioned here, especially the tip about Claimyr for actually reaching SSA when needed. And we're definitely looking into an ABLE account - even though it's not necessary for DAC benefits, it sounds like great protection for any future state benefits she might need. Thank you all for sharing your experiences so openly. It's such a relief to find accurate information and realize we're not the only family who's been confused by these complex benefit systems!

Hi everyone! I'm new to this community and stumbled across this thread while researching DAC benefits for my own family situation. This has been incredibly educational to read through! My 26-year-old cousin receives DAC benefits and we recently had a similar panic when he received a small inheritance from our aunt. A neighbor who receives SSI kept telling us he'd lose his benefits if he didn't spend it down immediately. Reading through all your experiences, I now realize she was mixing up SSI rules with DAC rules. It's amazing how widespread this confusion is! Even among people who receive disability benefits themselves, there seems to be a lot of mixing up between SSI and SSDI/DAC programs. I feel so much better knowing that DAC benefits don't have asset limits and he can keep his inheritance without any issues. I really appreciate everyone sharing their real-world experiences - from the SSA employees who gave wrong information initially, to the successful outcomes after getting correct information. The tips about ABLE accounts and keeping good documentation are really practical too. One question: for those who mentioned Claimyr for reaching SSA - is there a cost involved, and would you say it's worth it even for routine questions? I've been trying to reach them about an unrelated issue for weeks with no luck. Thanks again for this wealth of information. Communities like this are invaluable for navigating these complex benefit systems!

Hi everyone! I'm new to this community and this thread has been such a lifesaver for my family! My 23-year-old son receives DAC benefits, and we just went through this exact same panic last month when he received an insurance settlement from a car accident. Our local SSA office initially told us he'd need to "spend down" the money to stay under asset limits, which sent us into a complete tailspin. We were scrambling to figure out how to quickly spend $8,000 without "wasting" it when a disability advocate finally told us that was completely wrong advice. Like everyone else here has confirmed, DAC benefits are Title II (SSDI) and have NO asset limits whatsoever! The relief we felt when we learned this was incredible. My son can keep his settlement money in savings without any impact on his monthly benefits. What really bothers me is how confident that SSA employee was when giving us the wrong information. If we hadn't gotten a second opinion, we might have made some really poor financial decisions trying to comply with rules that don't even apply to his program. Reading through everyone's experiences here, it seems like this SSI/SSDI/DAC confusion is epidemic - even among the people who are supposed to be helping us navigate these systems. Thank you all for sharing your stories and creating such a valuable resource for families dealing with these complex benefit programs. I'll definitely be recommending this community to other families I know who are struggling with similar questions!

Hi everyone! I'm new to this community and this discussion has been incredibly helpful for my family's situation. My 29-year-old brother receives DAC benefits and we recently inherited some money from our uncle's estate. I was panicking because a friend who works at a local benefits office told me he'd need to report it and possibly lose benefits if it was too much. Reading through all these experiences, I now understand that DAC benefits fall under Title II (SSDI rules) and have absolutely NO asset limits! It's such a relief to know my brother can keep his inheritance without any impact on his monthly payments. What really stands out to me is how common this confusion seems to be - even among professionals who work with disability benefits. So many of you have shared stories about getting incorrect information from SSA employees, local benefit offices, and even other people in the disability community who mix up SSI and SSDI/DAC rules. The ABLE account suggestions throughout this thread are really valuable too. Even though my brother doesn't technically need one for his DAC benefits, it sounds like it could provide extra protection for any state benefits and help with budgeting disability-related expenses. Thank you all for creating such a supportive and informative community! It's clear that sharing these real-world experiences helps so many families navigate these confusing benefit systems. I'll definitely be sticking around to learn more and hopefully help others who might be dealing with similar questions.

Hi everyone! I'm new to this community and this entire thread has been absolutely invaluable for understanding DAC benefits. My 27-year-old daughter receives DAC benefits and we just went through this same terrifying experience when she received a life insurance payout after her father passed away. A well-meaning relative who receives SSI kept insisting that she needed to immediately spend the money or put it in someone else's name to avoid losing her benefits. We were actually considering some pretty drastic measures before I found this discussion and did more research. It's such a relief to learn that DAC benefits are Title II (SSDI) and have NO asset limits! My daughter can keep that life insurance money without any impact on her monthly DAC payments. The distinction between SSI and SSDI/DAC programs seems to be one of the most misunderstood aspects of the disability system. What struck me most reading through everyone's experiences is how even SSA employees sometimes give incorrect information about this. It's terrifying to think how many families might be making unnecessary financial decisions based on wrong advice from official sources. The ABLE account recommendations throughout this thread are really helpful too. Even though it's not required for DAC benefits, it sounds like it could provide good protection for any state benefits she might need later and help with managing disability-related expenses. Thank you all for sharing your stories so openly - this community is clearly filling a crucial gap in helping families navigate these incredibly complex benefit systems with accurate, real-world information!

As a newcomer to this community, I just want to say how incredibly helpful and reassuring this entire discussion has been! I'm dealing with a very similar situation with my 30-year-old sister who receives DAC benefits, and we recently panicked when she received a settlement from a workplace injury. Like so many others here, we initially got conflicting and incorrect information - one person at our local SSA office told us she'd need to "spend down" the settlement money, while another caseworker wasn't sure and suggested we call the main number. After reading through all these real experiences, I now understand that DAC benefits are Title II (SSDI) with NO asset limits whatsoever! What really stands out to me is how universal this confusion seems to be. Almost everyone here has a story about getting wrong information from SSA employees, benefit office workers, or even other people in the disability community who mix up SSI and DAC/SSDI rules. It's honestly concerning how widespread these misconceptions are, especially when they're coming from people who are supposed to be helping us navigate these systems. The practical tips throughout this thread have been invaluable too - from the ABLE account recommendations to the Claimyr service for actually reaching SSA representatives. I'm definitely going to help my sister set up an ABLE account for extra protection with any state benefits, and I've bookmarked several of the resources mentioned here. Thank you all for creating such a supportive environment where families can share real experiences and get accurate information. This community is clearly filling a crucial need that the official resources just don't address adequately!

As a newcomer to this community, I wanted to add my voice to this incredibly helpful discussion! My 26-year-old nephew receives DAC benefits, and we just went through this exact same scare when he received a modest inheritance from our grandmother's estate. A caseworker at our local benefits office confidently told us he'd need to report the inheritance and stay under the $2,000 limit or risk losing his benefits. We spent sleepless nights trying to figure out how to "spend down" the money responsibly before I found this thread and realized we'd been given completely wrong information! Reading through everyone's experiences has been such a relief and so educational. It's clear that DAC benefits fall under Title II (SSDI rules) with absolutely NO asset limits - my nephew can keep his inheritance without any impact on his monthly payments. The distinction between SSI and DAC/SSDI seems to be the source of so much confusion, even among people who work directly with these programs. What really strikes me is how many families here have similar stories about getting incorrect advice from SSA employees and other benefit workers. It's honestly scary how confidently wrong information can be delivered by people in official positions. Thank you all for sharing your real-world experiences - this community is providing the accurate guidance that the official channels often fail to deliver! I'm definitely going to look into an ABLE account for my nephew as extra protection for any future state benefits, and I'll be recommending this community to other families dealing with similar confusion.

As a newcomer to this community, I'm so grateful to have found this incredibly detailed and helpful discussion! My 25-year-old brother receives DAC benefits, and we recently went through this exact same panic when he received a small inheritance from our aunt's estate. A friend who works with disability services insisted that he needed to immediately report the money and stay under asset limits or he'd lose his benefits. We were frantically researching how to "spend down" about $12,000 before I stumbled across this thread and learned we'd been given completely incorrect advice! Reading through everyone's experiences has been such a huge relief. It's now crystal clear that DAC benefits are Title II (SSDI) programs with NO asset limits whatsoever - my brother can keep his inheritance without any impact on his monthly payments. The confusion between SSI rules (with the $2,000 limit) and DAC/SSDI rules seems to be incredibly widespread, even among professionals who work in disability services. What really stands out to me is how many families here have similar stories about getting wrong information from SSA employees, caseworkers, and other people who should know these distinctions. It's honestly frightening how confidently incorrect advice gets delivered by people in positions of authority. The practical tips throughout this discussion have been invaluable - especially the ABLE account recommendations and the Claimyr service for actually reaching SSA representatives. I'm definitely going to help my brother set up an ABLE account for extra protection with any future state benefits. Thank you all for creating such a supportive community where families can get accurate, real-world guidance on these complex benefit systems. This thread is going to save so many families from unnecessary panic and poor financial decisions based on widespread misinformation!