Special Needs Trust Attorney in Simi Valley

Special Needs Trust Attorney in Simi Valley

If a disabled family member receives an inheritance directly, without a special needs trust in place, their government benefits end. SSI and Medi-Cal are means-tested, and a direct inheritance counts as a resource that can disqualify the recipient. SSDI is not means-tested, so an inheritance does not reduce it. The SSI resource limit is $2,000 for an individual and $3,000 for a couple, an amount that a single inheritance check can blow through instantly. The trust must exist before the money arrives. Once benefits are terminated by a disqualifying resource, restoring them takes time and may require a first-party trust with payback provisions.

I am an estate planning attorney serving Simi Valley and all of Ventura County. I do this work over Zoom or phone, and a mobile notary comes to you for the signing. Simi Valley has many multi-generational families with caregiving situations, and the special needs trust planning I do for these families is some of the most important work in my practice. For the full planning context, see estate planning in Simi Valley.

Third-party trusts for Simi Valley families

A third-party special needs trust is established by a parent, grandparent, or other family member with their own assets for the benefit of the disabled person. It is designed to supplement government benefits, not replace them. The trust can pay for transportation, technology, recreation, education, personal care items, and other needs that SSI and Medi-Cal do not cover. The trustee manages distributions in a way that does not count as income or resources for benefit purposes. At the disabled beneficiary’s death, the remaining trust assets go to other family members or to a designated remainder beneficiary, with no payback to Medi-Cal. The absence of a payback requirement is the key advantage of a third-party trust over a first-party trust.

First-party trusts and the Medi-Cal payback requirement

A first-party special needs trust is different: it is funded with the disabled person’s own assets, most commonly a personal injury settlement, an inheritance received before a trust was in place, or back benefits. 42 U.S.C. §1396p(d)(4)(A) authorizes this type of trust specifically so that a disabled person under 65 can hold assets in trust without losing SSI or Medi-Cal eligibility, but it requires that any funds remaining in the trust at the beneficiary’s death first reimburse the state for Medi-Cal benefits paid during the beneficiary’s lifetime, before anything passes to other family members. This payback provision is a legal requirement, not optional drafting, and I make sure clients understand it going in. When a court orders a minor’s or disabled person’s money, such as a settlement or judgment, paid to a special needs trust, Cal. Prob. Code §3604 governs the court’s approval, adding a layer of oversight that the trustee must satisfy.

	Third-party trust	First-party trust
Whose money	A parent, grandparent, or other family member’s own assets	The disabled person’s own: a personal injury settlement, an inheritance received before a trust was in place, or back benefits
Payback at death	None. The remaining assets go to other family members or a designated remainder beneficiary	Remaining funds first reimburse the state for Medi-Cal benefits paid during the beneficiary’s lifetime (42 U.S.C. §1396p(d)(4)(A))
What it does	Supplements government benefits, paying for transportation, technology, recreation, education, personal care items and other needs SSI and Medi-Cal do not cover	Lets a disabled person under 65 hold assets in trust without losing SSI or Medi-Cal eligibility

ABLE accounts as a complementary tool

For smaller amounts, an ABLE account authorized under 26 U.S.C. § 529A can complement a special needs trust rather than replace it. ABLE accounts let a disabled person save and invest up to certain annual and lifetime limits without those funds counting against the SSI resource limit, and the account can be used more flexibly and with less administrative overhead than a full trust for day-to-day expenses. For Simi Valley families managing a disabled family member’s finances, I often recommend an ABLE account alongside a special needs trust: the ABLE account handles small, frequent expenses, and the trust holds and manages the larger inheritance or settlement.

Integrating with the parents’ estate plan

For a Simi Valley family where one child has a disability and others do not, the parents’ living trust needs to coordinate with the special needs trust. The disabled child’s share should pour into the special needs trust, not go directly to the disabled child. The non-disabled children’s shares go directly to them. Getting this coordination right in the drafting stage prevents a crisis when the parents die. For families also dealing with the conservatorship question for an adult disabled child, see conservatorship and the broader incapacity planning overview. A living trust that references the special needs trust is the standard mechanism for handling this.

Coordinating with schools, care providers, and IHSS

For a lot of Simi Valley families, the special needs trust is only one piece of a much larger caregiving picture that includes school-based services, In-Home Supportive Services, and regional center funding through the Tri-Counties Regional Center. The trust needs to be drafted with an awareness of how these other systems work, since a trust that pays for something a regional center is already required to provide can create redundancy or confusion, while a trust that fails to cover a gap those systems do not fill can leave the family paying out of pocket unnecessarily. I ask about every service and support a disabled family member is currently receiving or expected to need before drafting distribution provisions, so the trust supplements the existing system instead of duplicating or conflicting with it.

What does a Simi Valley house do to a disabled child’s share?

It swamps the benefit limits. The Zillow Home Value Index, August 2026, puts the typical Simi Valley home at $833,307. If a parent leaves that house equally to two children and one receives SSI, the outright share is about $416,654. The SSI resource limit for an individual is $2,000, so that share is more than 200 times the limit.

The court shortcuts don’t fix this, and one of them makes it worse.

Route	Fit for a typical Simi Valley house
Small estate affidavit (Prob. Code § 13100), limit $208,850	The house is $624,457 above the limit. Not available.
Primary residence petition (§ 13151), limit $750,000	The house is $83,307 above the limit. A house that appraises under it qualifies, and the order says who has succeeded to the property, outright, with no trust.
Full probate	The schedule in §§ 10800 and 10810 allows the executor and the attorney each $19,666 on the typical value, or $39,332 together, and the share still arrives outright.
Funded living trust that pours into a special needs trust	No court case, and the child’s share goes into the special needs trust, not into the child’s hands.

The plan has to work for the child even where the house is worth less than the typical figure. A home at $700,000 split two ways still leaves a $350,000 share. A petition order or a probate distribution puts that share in the child’s name.

What happens at the county offices when the house passes through a parent’s trust?

Three events, three different offices and clocks.

Event	Who acts	Where and when
Parent deeds the house into a revocable living trust	Parent, as trustor	Recorded with the Ventura County Clerk-Recorder, 800 S. Victoria Ave., Ventura. Not a change in ownership (Rev. & Tax. Code § 62(d)).
Parent dies	Successor trustee	Change in ownership statement with the county recorder or assessor within 150 days after the date of death (§ 480(b)).
A child moves into the house	That child	Homeowners’ exemption within a year, and the exclusion claim filed with the assessor (§ 63.2(a)(1)(B) and (b)).

The third row is where special needs planning gets tricky. The exclusion is written for a transfer to a child whose principal residence the home becomes. A trust that holds the house for a disabled child is a different structure, and I check it against the exclusion before I draft, not after the parent has died. The answer decides whether the family carries the old assessed value or a new one. Ask it while the parent can still sign, because the fix is a drafting change, and drafting changes are only available while someone has capacity.

What must a judge find before a settlement goes into a special needs trust?

Three things, and the order has to say something about the state’s claims. When a court orders a minor’s or a disabled person’s money paid to a special needs trust, the court can approve the trust only if it finds that the person has a disability that substantially impairs the ability to provide for their own care, that the person is likely to have special needs the trust will meet, and that the money going in isn’t more than reasonably necessary for those needs (Prob. Code § 3604(b)).

The order also has to provide that statutory liens of state departments and counties are satisfied first (§ 3604(d)). If nobody asked for the order when the settlement was approved, a parent, guardian, conservator or other interested person may petition for it, with notice at least 15 days before the hearing (§ 3604(a)(2)). Bring the settlement papers to the first call, because this is a deadline-driven filing.

Questions Simi Valley clients ask

How do I find a trustee who understands the rules?

A professional trustee who practices in special needs trust administration is an option. Nonprofit pooled trusts managed by disability advocacy organizations are another. A family member trustee who is willing to learn the rules and who will actually manage the trust actively can also work. I can help you think through the options based on your family’s situation.

Can the trust own the disabled person’s home?

Yes, a special needs trust can own real estate for the beneficiary’s use. Housing owned by the trust and used by the beneficiary is treated differently from cash distributions for rent under SSI rules. This is an area where the rules are specific and getting professional guidance matters.

What if the disabled person receives a personal injury settlement?

A settlement that goes directly to a disabled SSI recipient is a resource that will end their benefits. A first-party special needs trust established under 42 U.S.C. §1396p(d)(4)(A) with settlement funds, with court approval, can protect benefits while still allowing the disabled person to benefit from the settlement. This requires immediate legal action after a settlement is reached.

Does a special needs trust for my minor child need court approval?

Sometimes. Cal. Prob. Code §3604 applies when a court orders a minor’s or disabled adult’s money, such as a settlement or judgment, paid to a special needs trust, which adds a layer of oversight and periodic reporting that the trustee must satisfy.

Is an ABLE account a substitute for a special needs trust?

No, but it complements one. Under 26 U.S.C. § 529A, ABLE accounts allow smaller amounts to be saved without affecting benefits, but the contribution limits are far below what a trust can hold, so most families use both tools together rather than relying on either alone.

Could the primary residence petition let my disabled child’s share pass without a trust?

It could pass the house outright, which is the problem. A § 13151 petition asks the court to determine that the petitioner has succeeded to the real property. The order doesn’t route a disabled beneficiary’s share into a special needs trust. The plan has to put the house in a funded living trust that does.

What will a judge look at before approving a special needs trust for my child’s settlement?

Whether the disability substantially impairs the child’s ability to provide for their own care, whether the child has special needs the trust will meet, and whether the amount going in is reasonably necessary (Prob. Code § 3604(b)). The order also has to provide that state liens are satisfied first (§ 3604(d)).