When your child turns 18, you no longer have automatic legal authority over their money, so what you do next depends on where the money comes from. If the only money is government disability benefits, like SSI, you can ask Social Security to appoint you as your child’s representative payee, which lets you manage those benefits without going to court. If your child has other money, like an inheritance or a custodial account, you may need to ask the court for a conservatorship of the estate, though an inheritance left through a special needs trust can avoid that step.
Start with one question: does your child have assets, or just benefits?
If your child has no assets, just public benefits
If your child receives public benefits like SSI (Supplemental Security Income) or SSDI (Social Security Disability Insurance) and has no other assets, good news: you generally don’t need a conservatorship of the estate at all.
Instead, you can manage those benefits by becoming your child’s representative payee through the Social Security Administration. A representative payee receives and manages the benefit payments on your child’s behalf without court involvement. For many families whose adult child’s only “money” is their monthly benefit check, this is all that’s needed.
If your child has assets
If your child has assets, such as an inheritance or a custodial account (UTMA), the picture changes. A UTMA is an account an adult manages for a minor, and it usually ends when the child turns 18, at which point the money becomes the child’s own. If your child can’t manage money from either source, you likely need to establish a conservatorship of the estate, which is the court supervised way to manage an adult’s money for them.
Understanding conservatorship of the estate
When a conservatorship of the estate is necessary, there are some important things to understand:
A bond is required. The conservator must be bonded, with the bond amount set under California law based on the total value of the estate.
All assets must be reported to the court. At the start of the conservatorship, you must inventory all assets for the court.
Ongoing court supervision. The court oversees the estate and requires detailed, ongoing accountings of all financial activity, every dollar of income and every expenditure. You generally want an attorney to help you navigate these accountings, which results in legal fees.
In other words, a conservatorship of the estate is protective but ongoing, formal, and not free. That’s exactly why, when it can be avoided appropriately, families are often glad to avoid it.
The SSI trap families must know about
Here’s a critical point that catches families off guard: if your child receives SSI, they generally cannot have more than $2,000 in resources and remain eligible. That means receiving an inheritance outright could disqualify your child from SSI, which can also affect other benefits tied to it, like Medi-Cal.
So an inheritance intended to help your child can, if it’s handled wrong, do real harm. This is where planning ahead matters enormously.
The solution for an expected inheritance: a special needs trust
If your child can’t manage their own finances and is expected to receive an inheritance, the best move is usually for the family member leaving that inheritance to direct it into a special needs trust for your child. A properly drafted special needs trust offers two major benefits:
A trustee manages the funds and uses them to meet your child’s needs. Your child doesn’t control the funds directly.
The trust assets don’t count as your child’s resources, so your child keeps their SSI benefits (as long as the trust is properly drafted).
And there’s a powerful bonus: if the giver’s estate plan specifically directs the inheritance into the special needs trust, a conservatorship of the estate can be avoided entirely. The money is protected and managed, your child’s benefits are preserved, and your family skips the bond, the court reporting, and the recurring accountings.
One practical tip: if several family members want to leave something to your child, they can all contribute to a single shared special needs trust, rather than each creating a separate one. It’s simpler and easier to manage.
If your child receives a small inheritance: ABLE account
If your child will receive $20,000 or less (the annual contribution limit as of 2026), an ABLE account may be an option. An ABLE account lets a person with a disability save without losing SSI, and if the money is contributed directly into the account, your family may be able to skip both a conservatorship of the estate and a special needs trust. If your child can’t open the account on their own, you can serve as their Authorized Legal Representative, which lets you open and manage it for them. The limit counts everything contributed in a calendar year, so other gifts count toward it too. Learn more in What Is an ABLE Account in California?
Putting it together: a quick decision guide
Only SSI/SSDI, no other assets? → Become representative payee. No conservatorship of the estate needed.
Already has assets (inheritance received outright, UTMA account)? → You may need a conservatorship of the estate to manage them.
An inheritance is expected in the future? → Have the giver direct it into a special needs trust in their estate plan, which protects benefits and avoids a conservatorship of the estate.
Expected inheritance of $20,000 or less? → An ABLE account may be an option, and you can manage it as your child’s Authorized Legal Representative.
The theme running through all of this: plan before the money arrives. The options are better, and usually less expensive, when you set things up in advance rather than scrambling after an inheritance lands in your child’s name.
Let’s plan the right way for your family
Deciding how to manage an adult child’s finances, and coordinating that with their benefits and any expected inheritance, is a lot to sort out alone. I help families work through whether a conservatorship of the estate is needed and how it fits with the rest of the picture. I handle every case personally and serve families throughout Marin, the greater Bay Area, and beyond.
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This article is general information about California law and is not legal advice. Benefit limits and rules change over time — confirm current figures with the Social Security Administration. For guidance on your family's situation, please consult a qualified attorney.
