Planning that protects a loved one with a disability and their benefits

Why ordinary planning can backfire

Leaving money directly to a person who receives SSI or Medi-Cal can disqualify them until the money is spent down. A special needs plan holds the money in a way that supplements, rather than replaces, public benefits.

Tools we use

• Third-party special needs trusts are funded by parents, grandparents, or others, often through their own estate plan. They have no Medi-Cal payback requirement.
• First-party special needs trusts hold the beneficiary's own money, such as an inheritance received directly or a lawsuit settlement. They are often established with court approval and must include a payback provision.
• ABLE accounts (CalABLE in California) let eligible individuals save and pay qualified disability expenses with fewer benefit consequences.
• Supported decision-making agreements, described below, along with powers of attorney and advance health care directives that respect the person's own choices.
• A letter of intent that records routines, care preferences, and history for future caregivers and trustees.

Supported decision-making agreements

Many adults with intellectual or developmental disabilities can make their own decisions when they have the right help. A supported decision-making agreement is a written agreement in which the person chooses trusted supporters, such as parents, siblings, or friends, to help them gather information, understand their options, and communicate their choices. California recognizes these agreements by statute.

• The person keeps their rights. Unlike a conservatorship, the adult remains the decision-maker. Supporters help but do not decide for them.
• It can cover the areas that matter. Health care, finances, housing, school and work, and services from the regional center.
• It can be changed or ended. The person can revoke the agreement or change supporters at any time.
• It works alongside other documents. HIPAA releases, a power of attorney, and an advance health care directive give supporters practical access to doctors, banks, and agencies.
• The court must consider it. Before granting a conservatorship, California courts must consider whether supported decision-making would meet the person's needs. An agreement may also support a request to limit or end an existing conservatorship.

We prepare supported decision-making agreements in plain language, in English and Spanish, and walk through them with the person and their supporters so everyone understands their role. If more protection is needed later, see our page on limited conservatorship.

Planning at key moments

• Before age 18: plan for decision-making authority, SSI eligibility based on the young adult's own resources, and the transition from school services.
• When parents update their estate plan: direct the child's share to a special needs trust and name trustees and successors.
• After a settlement or inheritance: place funds in the right vehicle before they affect benefits. We coordinate with the attorneys handling the settlement or the probate case, and with the court.

Frequently asked questions