Will inheriting a house and investments affect my Social Security benefits? Inheritance confusion

Good news - an inheritance won't affect your regular Social Security retirement benefits at all! Those benefits are based on your lifetime earnings record, not your current assets or unearned income. The house and investments won't reduce your $2,150 monthly payment. However, if you were receiving SSI (Supplemental Security Income), which is needs-based, then yes, an inheritance would absolutely affect those payments since SSI has strict asset limits. The only other consideration might be if the investments generate significant income (dividends, interest, etc.) that could potentially make more of your Social Security benefits taxable. But that's an IRS issue, not something that reduces your actual SS benefit amount.

my mom got a house from her sister last yr and it didnt change her ss check at all. dont worry

Actually, you DO need to be careful about this! While regular Social Security won't be affected, if you're getting Medicare and might need Medicaid for nursing home care in the future, that inheritance WILL count against you! My father-in-law inherited money and then couldn't get help with his nursing home costs for almost 2 years because of the 5-year lookback period. You should talk to an elder law attorney ASAP!!

congrats on the inheritance! sorry about your uncle though

I went through something similar when my sister passed and left me her condo and some money. The regular Social Security retirement benefits are NOT affected by inheritance or assets - that's 100% accurate. But here's what I learned: 1. If you're on SSI (the needs-based program), then yes, assets matter a lot 2. If the investments generate income, that could potentially push more of your SS benefits into taxable territory 3. If the inherited IRA or 401k, you'll have distribution requirements that could affect your tax situation I had SO MUCH trouble getting accurate information from SSA on the phone - was on hold for HOURS and kept getting disconnected. I finally found this service called Claimyr (claimyr.com) that got me connected to an actual SSA agent in less than 5 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU Worth it to get straight answers instead of sitting on hold all day.

Just to add some clarity on the taxation point that a few people mentioned: Your Social Security benefits may be partially taxable if your "combined income" exceeds certain thresholds. Combined income is: - Your adjusted gross income - Plus nontaxable interest - Plus half of your Social Security benefits If that total is between $25,000-$34,000 (single filers), up to 50% of benefits may be taxable. Above $34,000, up to 85% may be taxable. So if your inheritance investments generate significant dividends or interest, they could push more of your benefits into taxable territory. But this is a tax issue, not a reduction in your actual SS benefit amount.

One small but important correction to what's been shared: while the inheritance itself won't affect your regular Social Security retirement benefits, if any of the inherited assets are from a retirement account (like an IRA or 401k), you may be required to take Required Minimum Distributions, which would count as income. This income could potentially make more of your Social Security benefits taxable. Additionally, if you're inheriting investments that pay dividends or interest, that income could also impact the taxation of your benefits. But to be crystal clear: the actual Social Security benefit amount will not change based on inheritance. Only the potential taxation of those benefits might be affected.

Thank you all so much for the helpful responses! I'm feeling much more confident about my upcoming appointment now. I've made notes about: - Regular SS retirement benefits won't be reduced by inheritance - Potential tax implications from investment income - Checking on the Required Minimum Distributions from the inherited IRA - Considering long-term Medicaid planning I really appreciate everyone taking time to help explain this!