Special Needs Trust Attorney in Westlake Village

Special Needs Trust Attorney in Westlake Village

A single inheritance can eliminate years of government benefits in an instant. If a disabled person receiving SSI or Medi-Cal receives money directly, whether from an inheritance or a gift, it counts as a resource and their benefits end. The current SSI resource limit is $2,000 for an individual and $3,000 for a couple, a number that has not changed in years and that a single unplanned gift or inheritance can blow through immediately. The special needs trust has to be established and properly funded before the money arrives. Once benefits are lost, getting them back usually means a first-party trust with a Medi-Cal payback.

I am an estate planning attorney serving Westlake Village and all of Ventura County. I do this work over Zoom or phone, and a mobile notary comes to you for signing. At Westlake Village wealth levels, a special needs trust often needs to be coordinated with a larger estate plan involving multiple trusts, irrevocable structures, and significant assets. Getting that coordination right matters. Start with the broader context at estate planning in Westlake Village.

Third-party versus first-party trusts

A third-party special needs trust is funded by someone other than the disabled beneficiary. A parent sets it up with their own assets for the benefit of a disabled child. At death, the remaining trust assets pass to other heirs without a payback obligation to Medi-Cal. A first-party special needs trust is funded with the disabled person’s own assets, typically because they received an inheritance or lawsuit settlement directly. First-party trusts must include a Medi-Cal payback provision under federal law. In Westlake Village estates where a disabled beneficiary might inherit substantial assets, the distinction matters enormously and the planning needs to be done years in advance.

	Third-party trust	First-party trust
Funded by	Someone other than the disabled beneficiary; a parent sets it up with their own assets	The disabled person’s own assets, typically an inheritance or lawsuit settlement received directly
Payback at death	None; the remaining assets pass to other heirs	Must include a Medi-Cal payback provision under federal law
How it fits the plan	A living trust that pours into the special needs sub-trust at death is the standard mechanism	Authorized by 42 U.S.C. §1396p(d)(4)(A), sometimes called a payback trust

ABLE accounts as a complement, not a replacement

An ABLE account lets a disabled individual hold up to a statutory limit in a tax-advantaged account without it counting against SSI or Medi-Cal resource limits, and the account owner has direct control over spending in a way that a trust does not provide. For Westlake Village families, an ABLE account is a useful tool for smaller, discretionary amounts the beneficiary manages personally, but it is not a substitute for a properly funded special needs trust when the family is passing down a meaningful inheritance. The two work well together: the trust holds the bulk of the funds and manages distributions according to the rules, while the ABLE account gives the beneficiary some measure of independence over day-to-day spending.

Coordinating with the larger estate plan

In a high-net-worth Westlake Village estate, the special needs trust for a disabled child may receive a significant inheritance at the parents’ death. The trust’s structure needs to be compatible with the overall estate plan, including any irrevocable structures. The trustee for a special needs trust needs to know the benefit rules well because an improper distribution can disqualify benefits for a month or longer. Many Westlake Village families use a professional trustee or a pooled special needs trust managed by a nonprofit organization precisely because the trustee role requires deep, ongoing knowledge of benefit rules that most family members do not have. For families who also face conservatorship questions about an adult child, see conservatorship. A living trust that pours into the special needs sub-trust at death is the standard mechanism.

What happens if the beneficiary is already an adult receiving benefits

Many Westlake Village families come to me after a disabled adult child is already receiving SSI or Medi-Cal, and the parents are only now updating their estate plan to account for that. In that situation, the parents’ living trust needs explicit language directing that the child’s share pours into a properly drafted special needs sub-trust rather than to the child outright. A generic trust that simply says “divide equally among my children” can unintentionally disqualify a disabled child from benefits the moment the parent dies, even though disinheriting that child was never the intent. I review existing plans specifically for this gap, because it is one of the most common and most avoidable mistakes I see in older Westlake Village trusts.

What the law requires for a properly structured trust

42 U.S.C. §1396p(d)(4)(A) is the federal statute that authorizes a first-party special needs trust, sometimes called a payback trust, and it requires that any funds remaining at the beneficiary’s death first reimburse the state for Medi-Cal benefits paid during the beneficiary’s life before anything passes to other heirs. Cal. Prob. Code §3604 applies when a court orders a minor’s or disabled person’s money, such as a settlement or judgment, paid to a special needs trust, which adds a layer of oversight designed to protect the beneficiary. And 26 U.S.C. § 529A is the federal provision authorizing ABLE accounts, the complement described above. Getting the structure and the paperwork right the first time matters, because a trust that does not comply with these provisions can itself become a disqualifying resource.

Which side of the county line is your Westlake Village home on?

The City of Westlake Village is entirely in Los Angeles County, and the Ventura County side of the old Westlake community is part of Thousand Oaks. ZIP codes 91361 and 91362 cross the line, so the side decides more than a probate courthouse for a family with a disabled member. It also decides which regional center coordinates services. Tri-Counties Regional Center serves Ventura County. For a home on the Los Angeles County side, the regional center depends on the address, and I check the state’s list of regional centers with you before drafting.

The courts split the same way. A parent’s estate on the Los Angeles County side is heard at the Stanley Mosk Courthouse. On the Ventura County side it is heard at the Juvenile and Probate Courthouse in Oxnard. A court petition tied to a settlement is different. It goes to the court handling the case that produced the money, and that court approves the trust’s terms and keeps continuing jurisdiction (Prob. Code § 3604(a)(1)).

What does a Westlake Village house do to a disabled beneficiary’s share?

An equal split of the typical Westlake Village home between two children hands each about $785,254, and the SSI resource limit for one person is $2,000. The Zillow Home Value Index, August 2026, puts the typical home at $1,570,507. At this value the question is not whether an outright share is too large. It always is. The question is what the trust holds and what it pays for.

For SSI, the home a person lives in is an excluded resource whatever it is worth (20 C.F.R. § 416.1212(b)). If your child already lives in the family house, the trust can own it and keep it as the home. Once the house is sold, the proceeds are cash, and they belong in the trust before the closing, not after.

The trust’s payments matter too. When someone else pays a beneficiary’s shelter costs, SSI can count that help as in-kind support and maintenance. The shelter list covers rent, mortgage payments, real property taxes, utilities such as heating fuel, water and sewerage, and garbage collection (§ 416.1130(b)(1)). Food is not on that list. Before the first distribution, I ask the trustee to write down which benefits the beneficiary receives and what each one requires the trustee to report. I model the reduction before the trust starts paying the property tax and utilities on a house the beneficiary occupies.

The housing mix in the city changes the plan. Westlake Village describes its homes as condominiums, lakefront residences, mobile homes, single-family homes, townhomes and view estates. A family sometimes holds a condominium for the child and a larger house for itself. The trust can own either, and each one needs its own deed recorded with the right county recorder. For the statewide rules on trust types, payback and ABLE accounts, see the special needs trust guide.

What does probate take from the trust’s funding?

If the house is in a parent’s name alone, the schedule in Prob. Code §§ 10800 and 10810 allows the executor and the attorney each $28,705 on the typical Westlake Village home, or $57,410 together, figured on gross value. That comes out of the asset meant to fund the special needs trust. The small estate affidavit tops out at $208,850 and the residence petition at $750,000, so neither shortcut reaches a home of this size. A living trust that pours the child’s share into a special needs sub-trust avoids the fee and the timing problem together. For the broader plan, see estate planning in Westlake Village.

Questions Westlake Village clients ask

What can the trust pay for without affecting benefits?

The trust can pay for supplemental goods and services that SSI and Medi-Cal do not cover: technology, education, transportation, recreation, personal care, and similar expenses. Direct cash distributions and payments for shelter are the distributions that can trigger benefit reductions. The rules are specific and the trustee needs to follow them carefully.

How much should we fund the trust?

There is no single answer. The funding amount depends on the disabled person’s projected lifetime needs, the cost of care, the expected benefits they will receive, and the family’s overall estate plan. I will help you think through the numbers during the planning process.

Can my sibling serve as trustee?

They can, but the trustee role for a special needs trust carries significant responsibility and knowledge requirements. A sibling who makes a wrong distribution can inadvertently end the beneficiary’s benefits. Many families name a sibling as a co-trustee alongside a professional trustee to balance family judgment with technical expertise.

Does a first-party special needs trust really have to repay Medi-Cal at death?

Yes. Under 42 U.S.C. §1396p(d)(4)(A), any funds remaining in a first-party trust at the beneficiary’s death must first reimburse the state for Medi-Cal benefits paid during the beneficiary’s lifetime before anything passes to other heirs. A third-party trust, funded by a parent’s own assets rather than the beneficiary’s, does not carry this payback requirement, which is one reason the distinction between the two trust types matters so much.

Which regional center serves a Westlake Village family?

It depends on the side of the county line and, on the Los Angeles County side, the address. Tri-Counties Regional Center serves Ventura, Santa Barbara and San Luis Obispo counties. I confirm the right one from the state’s list, then tell the trustee what the regional center already funds so the trust fills gaps and doesn’t duplicate.

If my child lives in our Westlake Village house, does SSI count the house?

Not while it is the child’s principal place of residence. SSI excludes the home regardless of value (20 C.F.R. § 416.1212(b)). The exclusion ends the month after the child no longer lives there with no intent to return, and sale proceeds are a countable resource, so the trust should be in place before a sale.

Can the trust pay the property tax and utilities on the house?

It can, but the payment may reduce SSI. Property taxes and utilities are shelter items the regulation counts as in-kind support and maintenance when someone else pays them (20 C.F.R. § 416.1130(b)(1)). I compare the size of the reduction against the benefit of the trust paying, then set the trust’s payment rules accordingly.