047: What Happens When a Person With Disabilities Receives an Unexpected Inheritance With Kevin Urbatsch
On this episode, we have special needs planning authority Kevin Urbatsch on to unpack what happens when a person with disabilities receives an unexpected inheritance. They walk through how SSI, Medi-Cal, and IHSS interact, why a windfall can jeopardize essential care, and what families need to understand before a parent’s estate plan unintentionally cuts off benefits.
We break down first-party options such as D4A and pooled special needs trusts, ABLE accounts, and the timing of a spend-down. They cover eligibility thresholds, timing rules regarding the month of receipt, and the trade-offs of payback provisions, so practitioners can protect a client’s long-term quality of life.
Kevin Urbatsch is a certified specialist in estate planning, trust, and probate law and the National Director of the Academy of Special Needs Planners, with three decades of experience focused on special needs trusts.
In this episode, you will hear:
- Risks of unexpected inheritances to SSI, Medi-Cal, and IHSS eligibility
- Using ABLE accounts and strategic spend downs to preserve benefits
- Payback requirements to state agencies and why third-party planning is often better
- Capacity issues, conservatorships, and court-ordered special needs trusts
- Special challenges for beneficiaries over 65 and for minors who inherit directly
- Practical guidance for trustees, fiduciaries, and attorneys managing SNTs
Resources from this Episode
https://www.amazon.com/Administering-California-Special-Needs-Trust/dp/B0GJPGQDJH
https://store.nolo.com/products/special-needs-trusts-spnt.html
The 6-Stage Probate Process: How to Navigate California Probate: https://a.co/d/82310Rw
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