Hi all,
I am 27 and disabled, set to receive more money than I've ever seen before (early estimate is 360k) from an inheritance in around 6 months, and I'm trying to do some research as to how I set myself up successfully with it while not being able to work/receiving no regular income. I have not been able to work since 2018. Receiving this lump sum will immediately disqualify me for SSI payments, Medicaid, and food stamps, all of which I've been dependent on or trying to get access to for years. This does not seem like a "set up for life" sum of cash, so I want to know how I both a) manage my day-to-day expenses like healthcare, regular bills etc. and b) give myself as much long-term stability as I can. A lot of this advice in the FAQ sections seems to be tailored towards people who have reliable income. How do I start from scratch? Do i just leave it alone and pay my basic expenses with it until it runs out? do I invest? buy a home? go back to school in hopes of being able to work with a degree in my chosen field? I'm paralyzed by indecision, inexperience, and the thought that none of this matters because it's going to run out eventually anyway, please help.
Disabled receiving an inheritance that will kick me off my current support systems, how do i make it last?
byu/No_Clothes_1880 inpersonalfinance
Posted by No_Clothes_1880
2 Comments
At 27, not including calculations for inflation, you need at LEAST $1 million to be close to “set up for life.”
Since you’re disabled, I would recommend talking to someone who specializes in inheritance or disability income, preferably a lawyer.
Don’t receive the money directly. Have them put it into a Medicaid trust. Income and assets from this do not affect your eligibility. You can invest in something safe like bond funds, and take the income each month/period as a buffer for your your disability payments.