Inheritance Issues

If you have an inheritance, you might be wondering how those funds could impact your trusts, disability benefits, or even your Medicaid. Receiving an inheritance can be an enormous gift, but the way in which you manage those funds can have a significant impact on your financial interests and future security. If you’re dealing with inheritance issues, no matter how complex, our team at Legacy Enhancement Trust is here to help.

At Legacy Enhancement Trust, we know how challenging money management can be. Our team is dedicated to helping our clients find peace of mind through smart trust solutions, including pooled special needs trusts and minors' trusts. Whatever your needs, we want to help you find the ideal solution.

Call (888) 988-5503 to discuss your inheritance problem with our team at Legacy Enhancement Trust.

Will an Inheritance Affect My Disability Benefits?

Anyone who currently receives disability benefits, whether through SSI or SSDI, knows that there are several factors the Social Security Administration considers before it grants specific benefits. If you receive an inheritance, your SSDI should not be affected—this program is based on your work history, not on your current income or resources. However, your SSI benefits could be affected by an inheritance because it would be viewed as additional income or a resource. Because SSI is based on financial need, a large inheritance could make you ineligible for continued SSI benefits.

If you currently receive medical benefits, either through SSI or SSDI, you need to discuss your situation with our experienced team right away. We have ample experience handling inheritance issues, and we can help you find a solution that secures your finances and helps set you up for a secure, comfortable future.

Understanding Medicaid and Inheritance

Medicaid helps provide millions of Americans with health coverage that they might not receive otherwise, especially pregnant women, low-income adults, older adults, and people with disabilities. Unfortunately, because Medicaid has strict income and resource rules, anyone who receives an inheritance while on Medicaid could potentially lose coverage.

If you are on Medicaid and you recently received an inheritance, or you expect to receive one soon, our team at Legacy Enhancement Trust is prepared to help.

How Special Needs Trusts Can Help With Inheritance Issues

Special needs trusts can help individuals receive an inheritance while preserving eligibility for needs-based benefits such as SSI and Medicaid. The right trust option depends on factors like who provided the funds, how the assets are structured, and the individual’s long-term needs.

Common options may include:

• First-party special needs trusts: Used when the beneficiary’s own assets fund the trust.
• Third-party special needs trusts: Created by family members or others to support a beneficiary.
• Pooled special needs trusts: Managed by nonprofit organizations and may provide a cost-effective option for some individuals.

At Legacy Enhancement Trust, we help families nationwide understand their options and develop strategies for managing inherited assets while considering applicable regulations.

Steps to Take If You Expect an Inheritance

Planning before receiving an inheritance can help avoid disruptions to important benefits and create a more effective long-term strategy. If you receive needs-based benefits, consider gathering important information early, including:

• Copies of relevant will or trust documents
• An estimate of the expected inheritance amount
• Details about current benefits and financial resources

Understanding how an inheritance may affect your situation can help you make informed decisions. At Legacy Enhancement Trust, we help individuals and families evaluate potential approaches and address inheritance issues with careful planning based on their circumstances.

Get the help you need from an experienced inheritance professional. Fill out our online form without delay.

Commonly Asked Questions