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Inheritance and VA Benefits /SSD

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jeffintenn

Junior Member
What is the name of your state? Tennessee

Hello

I am getting a inheritance soon (Over 80,000) and need to know as Disabled Service Connected Veteran and on Social Security Disability with there be a benefit penalty ? What taxes would I have to pay? Thanks for your help.
 


moburkes

Senior Member
What is the name of your state? Tennessee

Hello

I am getting a inheritance soon (Over 80,000) and need to know as Disabled Service Connected Veteran and on Social Security Disability with there be a benefit penalty ? What taxes would I have to pay? Thanks for your help.
Have you contact SSA or VA?
 

BlondiePB

Senior Member
SSD will not be affected by an inheritance (SSDI is affected). Your VA benefits could be affected, so call the VA.
 
SSD will not be affected by an inheritance (SSDI is affected). Your VA benefits could be affected, so call the VA.
Blondie, His VA benefits have absolutely nothing to do with an Inheritance and will not be affected in the least. No wonder this is a "free" advice forum. You tend to get what you pay for don't you.
 
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moburkes

Senior Member
She never said they WOULD be. She said they COULD be. Maybe, she didn't know, which is why she made the statement she did. She gave explicit answers for SSI and SSDI, but stated C-O-U-L-D for the VA question. She directed him to call and A-S-K.

What a nut.
 
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BlondiePB

Senior Member
She never said they WOULD be. She said they COULD be. Maybe, she didn't know, which is why she made the statement she did. She gave explicit answers for SSI and SSDI, but stated C-O-U-L-D for the VA question. She directed him to call and A-S-K.

What a nut.
The OP put in a very telling figure $80,000.00.
 
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What is the name of your state? Tennessee

Hello

I am getting a inheritance soon (Over 80,000) and need to know as Disabled Service Connected Veteran and on Social Security Disability with there be a benefit penalty ? What taxes would I have to pay? Thanks for your help.

Jeffintenn,

I am also a service connected partially disabled Veteran. PTSD and hearing loss from my time in Vietnam before these on here were even born. Your inheritance will not be affected by either the VA or Social Security.
 
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BlondiePB

Senior Member
jeffintenn did not even state what type of VA benefits he was receiving. Below is from the VA website:


Section 306 Disability Pension - Veteran without Dependents 3.3% Cost-of-Living Increase Effective 12/01/2006

Veteran Status Condition Income Limit
Veteran ONLY
The rate entitled to on December 31, 1978, may be continued if the veteran's IVAP for 2006 is $12,432 or less Special A/A Allowance When Income Exceeds $12,432 The rate entitled to on December 31, 1978, may be continued if the veteran's IVAP for 2006 is $12,932 or less
38 CFR 3.552 Rates (Hospital Reduction) for Special A/A Allowance The rate entitled to (see 38 CFR 3.552 Rate Chart on page VI (1978) -1) on December 31, 1978, will be paid if the veteran is hospitalized on January 1, 2006, or later and the veteran's IVAP for 2006 is $12,932 or less


Section 306 Disability Pension Spouse Income Exclusion Under 38 CFR 3.262(b)(2)
Effective 12/1/06 = $3,967

Section 306 Disability Pension - Veteran with Dependents
3.3% Cost-of-Living Increase Effective 12/01/2006

Veteran Status Condition Income Limit
Veteran with Dependents The rate entitled to on December 31, 1978, may be continued if the IVAP for 2006 is $16,710 or less
Special A/A Allowance When Income Exceeds $16,710 The rate entitled to on December 31, 1978, may be continued if the veteran's IVAP for 2006 is $17,210 or less
38 CFR 3.552 Rates (Hospital Reduction) for Special A/A Allowance The rate entitled to (see 38 CFR 3.552 Rate Chart on page VI (1978) -2) on December 31, 1978, will be paid if the veteran is hospitalized on January 1, 2006, or later and the veteran's IVAP for 2006 is $17,210 or less


Section 306 Death Pension
3.3% Cost-of-Living Increase Effective 12/01/2006

Dependent Status Condition Income Limit
Surviving Spouse ONLY The rate entitled to on December 31, 1978, may be continued if the surviving spouse's IVAP for 2006 is $12,432 or less
Surviving Spouse AND Child(ren) The rate entitled to on December 31, 1978, may be continued if the surviving spouse's IVAP for 2006 is $16,710 or less
Child(ren) ONLY The rate entitled to on December 31, 1978, may be continued if the child's IVAP for 2006 is $10,163 or less


Section 306 Death Pension SBP/MIW Annuity Limitation
Effective 12/01/06 = $7,329



--------------------------------------------------------------------------------


Old Law Disability Pension
3.3% Cost-of-Living Increase Effective 12/01/2006

Veteran's Dependent Status Income Limits
Unmarried Veterans $10,883
Veteran and Spouse or Minor Child (no spouse) $15,690

Veteran's Entitlement Rates Payable
Basic Rates $66.15
10 Years or Age 65 $78.75
If Entitled to A/A $135.45
If Entitled to HB $100.00


Old Law Death Pension
3.3% Cost-of-Living Increase Effective 12/01/2006

Beneficiary Income Limit
Surviving Spouse Only or Each Child (No Surviving Spouse) $10,883
Surviving Spouse (With Child or Children) $15,690


Old Law Death Pension SBP/MIW Annuity Limitation = $7,329
3.3% Cost-of-Living Increase Effective 12/01/2006
 
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moburkes

Senior Member
For purposes of determining whether Social Security benefits are payable, a person's earnings for a taxable year are the sum of pay for services as an employee plus all net earnings from self-employment (minus any net loss from self-employment) for that year.

Wages for Social Security purposes are gross wages - wages before any payroll deductions for income tax, Social Security tax, dues, insurance, or other deductions by the employer. We use gross wages as the basis for Social Security credit and for determining whether benefits must be withheld because of earnings.

Nonwork sources of income, such as:

inheritance payments,
pensions,
income from investments,
IRA distributions,
interest, or
other sources;
do not count as wages for the earnings test. The Social Security retirement program insures against loss of earnings from work and not against the failure to have investment income.

More information may be found in our publication called "How Work Affects Your Benefits," publication number 05-10069, which is available on the Internet at: http://www.socialsecurity.gov/pubs/10069.html
 
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