Yes. That is all correct. Ontario Disability will treat your inheritance as income, unless it's put into trust.
limitations on trust handling: inheritance monies must be placed in a trust within six months of receiving it - up to $100,000 of the created trust may be exempt as an asset
per the prior (waldo supplied) link there are also alternatives to a trust; alternatives to use inherited money towards assets that do not affect eligibility for Disability Income Support, such as:
- investing in a Registered Education Savings Plan (RESP) for your children
- investing in a Registered Disability Savings Plan (RDSP),
- using it to buy a disability-related item that has been approved in advance, or
- buying a home to live in.