SSI, Special Needs Trusts & the New Planning Rules: What Families Must Understand in 2026

Supporting a loved one with disabilities requires careful planning—especially when benefits like SSI and Medi-Cal depend on strict income and asset limits. Even small financial decisions can have major consequences. As new rules take effect in 2026, families will want to ensure their plans fully align with updated requirements to avoid accidental loss of benefits.

Understanding How SSI & Medi-Cal Eligibility Really Works

SSI and Medi-Cal both evaluate a beneficiary’s financial resources. An unexpected inheritance, a bank account titled incorrectly, or direct financial gifts can cause benefits to be reduced or suspended. Many families are surprised to learn that even routine actions—such as adding a child to a bank account for convenience—can count as a resource and jeopardize eligibility.

Common Missteps That Create Problems

Some of the most frequent (and harmful) mistakes include:

• Leaving assets directly to a child or adult receiving benefits
  
• Verbally designating a sibling to “hold funds” informally
  
• Naming a beneficiary with disabilities on accounts, life insurance, or retirement plans
  
• Using joint accounts without understanding how they’re treated under SSI resource rules
  

These missteps often lead to benefit disruptions, repayment demands, and unnecessary stress during already difficult moments.

How Special Needs Trusts Provide Long-Term Protection

A properly drafted Special Needs Trust (SNT) keeps assets out of the beneficiary’s countable resources while still allowing funds to be used for quality-of-life needs—such as therapies, education, personal care, travel, technology, and more. The trust ensures that support is supplemental, not a replacement for SSI or Medi-Cal.

For many families, SNTs also provide structure, oversight, and long-term continuity that informal arrangements simply can’t offer.

Preparing for 2026 With Confidence

With updated benefit rules taking effect, this is the ideal time to:

• Review any existing Special Needs Trusts for compliance
  
• Update beneficiary designations on insurance and retirement accounts
  
• Ensure gifts and inheritances are directed properly
  
• Confirm that your selected trustees understand their responsibilities
  
• Address gaps that could affect long-term eligibility
  

The goal is simple: protect your loved one’s benefits, preserve their autonomy, and create a stable, reliable support plan for the future.

If you’d like to review your plan or explore Special Needs Trust options, we’re here to help whenever you’re ready.