What's the same as everywhere — and what's specific to California, including the major 2026 Medi-Cal asset-limit change.
California's special needs trust rules are federal at the core, but California's Medi-Cal system just went through a major change every family here needs to understand. After eliminating its Medi-Cal asset limit in 2024, California reinstated it on January 1, 2026 — at $130,000 for an individual — and added a new look-back period. California also delivers disability services through regional centers, runs CalABLE (which has no Medicaid payback), and is not a Miller-trust income-cap state.
As everywhere, a third-party special needs trust holds assets without counting against benefit limits and avoids payback. See what a special needs trust is for the basics.
This is the headline for California families. For two years (2024–2025), Medi-Cal had no asset limit, and some families relaxed their planning or kept savings in ordinary accounts. That window has closed. As of January 1, 2026, the Medi-Cal asset limit is back at $130,000 for an individual, plus $65,000 for each additional household member. If your loved one accumulated savings during the no-limit period and hasn't sheltered them, now is the time to move them into a special needs trust or CalABLE account before the next eligibility review. California also added a 30-month look-back for nursing-facility Medi-Cal starting in 2026, though transfers made during 2024–2025 are exempt.
California delivers most developmental-disability services through its regional centers under the Lanterman Act, rather than the waitlist-driven waiver model used in many states. The Self-Determination Program gives families more control over their service budget. A California special needs plan should coordinate with the local regional center.
California's ABLE program is CalABLE, and it has a meaningful edge: under SB 218, CalABLE accounts have no Medicaid payback in California. That makes moving money into CalABLE — for example, shifting funds each year from a first-party trust into CalABLE — a powerful way to protect assets from recovery at death.
Remember that in California the terminology differs from most states: guardianship applies to minors, and conservatorship applies to adults. California has also expanded supported decision-making as a less-restrictive alternative, so explore those options before pursuing a conservatorship.
California has several nonprofit-run pooled special needs trusts. To create a stand-alone trust — or to revisit one drafted during the 2024–2025 no-asset-limit period — work with a California-licensed special needs attorney. Special Legacy partners with your California attorney on the funding side of the plan.
If your family did California planning during 2024 or 2025, revisit it now. The asset limit is back, the rules shifted on January 1, 2026, and a quick review with your attorney can keep your loved one's Medi-Cal firmly in place.
Our free Care Cost Calculator estimates your loved one's lifetime care costs and shows the funding gap — a clear, no-pressure place to begin.
Estimate Care CostsThis article is for educational purposes only and is not legal, tax, or financial advice. Eligibility rules and dollar figures change frequently and vary by program. The figures here reflect 2026 and should be confirmed with your state Medicaid agency and a special needs attorney licensed in your state.