Answer: A child under 18 years of age is allowed to collect on an adult's earnings record where the adult is eligible for Social Security disability benefits and is the natural or adopted parent of the child. Alternatively, a child may be entitled to Social Security disability benefits on a stepparent's earnings record where the stepparent is providing at least half of the child's support. Therefore, so long as the children are under 18 years of age and you are paying for at least half of their support, they should be eligible to receive money on your earnings record. To receive these extra benefits, you should go to your local Social Security district office and file an application on their behalf.
Question: I currently receive SSI benefits. My mother recently died and left me with an inheritance of $5,000. Will this inheritance place my benefits at risk?
Answer: The month you receive the inheritance, Social Security will consider you to have outside income of $5,000 dollars which will make you ineligible for SSI that month. The check you received on the first of the month will need to be returned to Social Security. The following month what is left of the inheritance is considered a resource.
Individuals may have up to $2,000 in resources and married couples up to $3,000. Thus, assuming you are single, if you spend your inheritance down the same month you receive it so that what is left plus any other resources you have total less than $2,000, your SSI payment the following month and thereafter will not be affected. If you do not spend your inheritance down, you will continue to be ineligible for your SSI benefits until your total resources drop below the $2,000 level.
In determining whether your resources are more or less than $2,000 (or
$3,000 if you are married), Social Security will consider all of your resources,
not just your unspent inheritance. Your resources include your cash and
bank accounts (including what is left of the inheritance), a second car,
and property you own other than where you live. Household goods,
personal belongings and a first car generally do not count as resources
though it depends on their value.
You can spend your inheritance down in any way you want, but make sure
you keep receipts or other documentation to show Social Security that the
money was actually spent. Suggestions sometimes made for spending an inheritance
are to prepay rent for several months or even to buy a house if the inheritance
is large enough. You can also create a "Special Needs" trust which allows
the money to be spent only for certain allowable expenditures, though you
should consult an attorney for advice as to whether such a trust makes
sense for you.
If you know you are going to receive an inheritance, plan ahead so that
you can spend the money down as quickly as possible to minimize the loss
of your SSI benefits.