Legal Question in Wills and Trusts in California

If he is no longer receiving SSI, then SS benefits through his mother's credits is not a means tested benefit and is not subject to the asset limitations ($2,000) of SSI. However, what I don't know is if he is receiving other benefits, including Medi-Cal that might be affected by the inheritance. You should speak to an attorney who specializes in Special Needs Trusts (such as myself) and have them review all of the facts to help you decide what your cousin should do.

Since he lost his SSI, he lost his automatic eligibility for Medi-Cal benefits, but he can maintain Medi-Cal, subject to a share of cost based on his income, if he keeps less than $2,000 in countable assets.

The State (more specifically, the Cal. Dept of Health Care Services) won't "take away" his inheritance while your cousin is alive. They will deny him eligibility for Medi-Cal if he's over the $2,000 resource limit, but there's no estate recovery against him while he lives.

Upon his death, DHCS will assert an estate claim against the assets he owns on his death for the Medi-Cal benefits paid on his behalf from age 55 and up (or in nursing homes at any age). If there is such a Medi-Cal estate claim on the horizon, your cousin should consult with an attorney who does Medi-Cal planning because it's definitely possible to shelter his inherited assets from the Medi-Cal estate claim.

It think that under covered California, if you qualify for Medi-Cal by being low income, there is no longer a limit on assets owned.