Will selling inherited property affect my Social Security benefits or Medicare? Suddenly responsible for brother's house

First, I'm so sorry for your loss. Dealing with practical matters while grieving is incredibly difficult. To answer your question - yes, selling the property could potentially impact your Medicare premiums through something called IRMAA (Income-Related Monthly Adjustment Amount), but it would NOT affect your Social Security retirement benefits. SS retirement isn't income-based once you're receiving it. For Medicare, if the sale gives you a significantly higher income for that tax year, you might see higher Part B and Part D premiums, but only for one year typically. The increase would be based on your MAGI (Modified Adjusted Gross Income) from two years prior to the premium year. Also important - you may be eligible for stepped-up basis on the property value as of your brother's date of death, which could significantly reduce any capital gains taxes you'd owe.

sry bout ur brother. when my aunt died i sold her condo and the ss office didnt care but my medicare went up for a year. it sucked but then went back to normal. dont worry about your monthly ss check tho that stays the same no matter what

MEDICARE WILL ABSOLUTELY BE AFFECTED!! I inherited my mother's house in 2022 and sold it for $230k and my Medicare premiums MORE THAN DOUBLED in 2024!!! Social Security does NOT care about your grief or circumstances - they ONLY look at the numbers from IRS!! Your Part B will go way up and if you have Part D that will too. They call it IRMAA and it's HIGHWAY ROBBERY when you think about it. Just a one-time sale and suddenly you're treated like a millionaire!!! SS benefits won't change though.

I went through something similar when my wife passed and left me her family home. The key thing to understand is the "step-up in basis" rule for inherited property. This means the property's tax basis becomes its fair market value on the date of your brother's death, not what he originally paid for it. Example: If your brother bought the house for $50,000 years ago, and it's worth $175,000 now when he passed, your basis is $175,000. If you sell for $175,000, you technically have $0 in capital gains. This could significantly reduce or eliminate the tax impact. For 2025, IRMAA surcharges kick in when your 2023 MAGI exceeds $103,000 for individuals. You might want to talk to a tax professional who specializes in elder planning to explore strategies for minimizing the impact.

my condolences on ur loss... when my dad died it took me 6 months before i could even think about his house stuff. dont rush if ur not ready. grief is hard

I've been trying to get through to Social Security for THREE WEEKS to ask a similar question about inheritance and benefits! Their phone lines are useless - constant busy signals or being disconnected after waiting an hour. Has anyone found a way to actually speak to a human being there? I need answers about my situation too!

Another important consideration: if you sell the house in the same tax year as your brother's passing, you might be able to work with a tax professional to offset some of the gains with final expenses and estate costs. Also, don't forget to look into the capital gains exclusion on home sales if your brother lived in the home as his primary residence for at least 2 of the last 5 years before selling. This won't apply to you as the inheritor, but it might have tax implications for the estate. Your Social Security retirement benefits won't be reduced by this inheritance or sale. The Social Security earnings test only applies to people receiving benefits before their Full Retirement Age who are still working. At 68, you're beyond FRA and that test doesn't apply to you anymore.

hey just wondering if your brother was on social security too? cuz you might be able to get his last check if it wasnt cashed. my cousin got her moms last payment by going to the SS office with the death certificate

Since we're discussing the financial impacts, you might want to know there's an appeals process for IRMAA if you believe the increase would cause you significant hardship. SSA has a "Life-Changing Event" form (SSA-44) you can file if your income has decreased due to certain circumstances. While a one-time property sale itself isn't considered a life-changing event, if you've experienced other changes like retirement, reduced work hours, or loss of income-producing property, you might qualify for relief. Worth looking into if your Medicare premiums do increase significantly. Also, getting documentation about the property's value at the time of your brother's death is crucial for establishing that stepped-up basis we discussed. An appraisal dated close to his passing date would be ideal.

btw forgot to say dont wait too long to decide on the house. my friends mom waited a year when she inherited and the property taxes and maintence costs added up fast. if ur not gonna live there better to sell sooner and put the money somewhere safe