BACKGROUND: Due to the teriible economy, globilization and my age, I have not worked full time for over 3 years. And, after exhausting all my personal resources 2 years ago, have gone on government assistance. At my renewal meeting this week they just told me that I MUST file for Early Retirement Social Security. So I did so and I was just informed that my first SS check will be on November 16.

ISSUE: I have now found out that I a receiving a $25,000 bequest from a dear friend who passed away recently. My question is will this affect my government benefits (SNAP and Medicaid) as well as my Social Security? And if so, what is the best way for me to deal with this situation so that I can keep the gifted money as a little 'cushion' and so that it it doesn't adversely affect what I am already receiving?

Hi,

A bequest from a friend is not considered as earned income for purposes of the Social Security earnings test (https://www.ssa.gov/planners/retire/whileworking2.html). So, the $25,000 you received will not affect your Social Security benefits.

I don't know much about SNAP and Medicaid, but since they are both needs based benefits, I would assume that the $25,000 you received will have some effect. You should check with the agency paying those benefits for more information.

Best, Jerry