Special Needs Trusts ABLE Accounts WIPA

A special needs trust (SNT), or a supplemental needs trust, can help you provide financial security to your child after you die without leaving them ineligible for the government benefits they need to obtain care.

Many people with mental health disabilities are eligible to receive government financial assistance such as Supplemental Security Income (SSI), Medi-Cal (Medicaid), HUD Section 8, In-Home Support Services, and CalFresh. These government aid plans are based on financial need and have strict income eligibility requirements, however. If the person receives a large amount of money from an inheritance, they can be disqualified from such needs-based programs. For the family members of a special needs individual, careful estate planning is essential to prevent such an outcome.

The purpose of a “Special Needs Trust” is to preserve government benefits for disabled beneficiaries. Instead of leaving assets directly to the disabled adult child, families can establish a “Third Party Special Needs Trust” in their living trust or wills. This trust would not be under the control of the child but would be managed by an independent trustee named by the parents and would continue for the lifetime of the child.

This type of trust prevents the beneficiary from controlling their inherited assets, but also provides a means for parents to ensure their disabled loved one receives financial support even after their deaths. The trust owns assets that are used but not “owned” by the beneficiary, and do not count against needs-based government aid. The trustee may not want to give cash directly to the child, as such payments are counted as income against SSI, but they can pay for expenses such as utilities, transportation, education, recreation, etc. The trust may pay for food and rent (or purchasing a home), although paying for such “basic needs” will trigger a reduction in SSI benefits. Assets owned by the trust can include money, property, stocks and bonds, child support, and monetary legal settlements; and other family members and friends can also contribute money and assets to the trust.

Expert Resources

For more information on Special Needs Trust funds in California, see Building Your Assets and Wealth: The Details by Disability Benefits 101. Families who think they need such an estate planning arrangement should consult an attorney with experience preparing Special Needs Trusts. Also, families who want to hire an experienced Professional Fiduciary to administer a Special Needs Trust can go to the Professional Fiduciary Association of California website (click on the Find a Fiduciary menu item and look for someone who specializes in Special Needs Trusts). The following books are also recommended:

• Special Needs Trusts: Protecting Your Child’s Financial Future by Kevin Urbatsch, Attorney and Michele Fuller-Urbatch, Attorney, (11th Edition) published by Nolo Press
• Administering the California Special Needs Trust, by Kevin Urbatsch, Attorney, (4th edition) independently published in 2026

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ABLE accounts are tax-advantaged savings accounts for persons with disabilities. California’s ABLE account program is called CalABLE. If you have a disability that began before you turned 46, you can open an ABLE account. Advantages are:

• Savings and tax advantages – Money saved in ABLE accounts is not taxed as long as money taken out of the account is used for “qualified disability expenses.” Also, friends and family can contribute to your ABLE account.
• Work income savings – With the ABLE to Work Act you may even be eligible to contribute up to an extra $15,650 (as of 2026) to your CalABLE account if you are working, in addition to the yearly contribution limit of $20,000.
• Preserving your benefits – You can save up to $100,000 in your ABLE account without affecting your SSI benefits (ABLE savings do not count against the SSI $2,000 asset limit). Also, the money saved in an ABLE account does not affect CalFresh eligibility.
• Flexible spending – You can use your ABLE savings for many “qualifying expenses,” such as housing, education, transportation, legal fees, etc

Expert Resources

For more information about CalABLE account eligibility, rules, and benefits, see the CalABLE website for California.

You can choose to open an ABLE Account in another State’s ABLE program. You can compare different state ABLE accounts program to see which one best fits your needs.  Note: You can switch your ABLE account from one state program to another. You do not have to stick with the state program you choose.

Ref: ¹Disability Benefits 101

Good sources of information about ABLE accounts in general are:

• ABLE Accounts page on the Disability Benefits 101 website.
• ABLE National Resource Center (ABLE NRC)

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If you already have a Special Needs Trust, it’s a good idea to open an ABLE account as well, because these asset protection tools have different advantages.

Advantages of ABLE accounts:

• Tax benefits
• Easier (and cheaper) to open
• Easier to use the money in the account
• The person with a disability has more control over the account
•  ABLE account funds used for housing expenses doesn’t make SSI benefits go down

Advantages of Special Needs Trusts:

• No limits on contributions
• Money can be put into a third-party trust, instead of in the disabled person’s name. When the beneficiary dies, a third-party trust does not have to repay Medi-Cal for medical expenses.
• Some third-party trusts are Qualified Disability Trusts and have tax benefits

The bottom line: Because of the $20,000 annual limit on contributions to an ABLE account, it should not replace a Special Needs Trust. Instead, consider using them both as part of your overall asset-building strategy.

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Many people receiving Social Security benefits (SSI and/or SSDI) would like to work but are worried that they will lose their benefits if they earn an income. The Work Incentive Planning & Assistance (WIPA) Program is a FREE service offered by the Social Security Administration to help those on SSI/SSDI to make informed choices about working. This program is for individuals currently receiving disability benefits who are considering work, seeking work, self-employed, or currently employed. WIPA will provide you with information about work incentives which may allow you to keep some or all of your cash benefits as well as your medical benefits.

Expert Resources

To obtain local WIPA services, you must work with an SSA Certified Work Incentive Counselor (CWIC). For Santa Clara County residents, the closest WIPA provider is at the Center for Independence (CID) in San Mateo County. Most WIPA benefits counseling is handled by phone or video calls, so you do not need to travel to their San Mateo office to work with a SWIC.

• How to get referred: You cannot usually bypass the intake line to call the local CWIC directly. You must first contact the national Ticket to Work Helpline at 1-866-968-7842 (TTY: 1-866-833-2967).
• The Process: The Ticket to Work Helpline staff will verify that you receive SSI/SSDI and are actively working or looking for work. Once verified, they will route your case directly to CID’s WIPA project team, who will assign your local CWIC.