Special Needs Trust vs. ABLE Account – Choosing the Right Path for Long-Term Security

For California families supporting a loved one with disabilities, choosing between an ABLE account and a special needs trust can feel overwhelming. At Newman Law Group, we help you understand your options and create a custom strategy that preserves eligibility for SSI and Medi-Cal while building long-term financial support.

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Two Powerful Tools, One Clear Goal: A Secure Future

The goal of both an ABLE account and a special needs trust is to provide financial support without disrupting vital benefits like Supplemental Security Income (SSI) or Medi-Cal. But each has different rules, uses, and advantages.



An ABLE account offers a tax-advantaged way to save for everyday expenses, while a special needs trust allows for long-term planning and managing larger sums. Many families in Orange County use both tools in tandem to give their loved ones independence today and protection for tomorrow.

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Key Differences Between ABLE Accounts and Special Needs Trusts

Eligibility & Setup

ABLE accounts are limited to individuals with disabilities that began before age 26. Special needs trusts have no age requirement, and are commonly used in estate plans, lawsuit settlements, or inheritances.

Contribution & Balance Limits

ABLE accounts have annual contribution limits (about $17,000) and a balance cap before benefits are affected. Special needs trusts can hold unlimited funds without risking SSI or Medi-Cal eligibility.

Control & Access

ABLE accounts are managed by the beneficiary or a family member, offering autonomy for day-to-day expenses. Trusts are controlled by a trustee who distributes funds as needed.

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Frequently Asked Questions

  • Can I have both an ABLE account and a special needs trust?

    Yes. Many families use an ABLE account for smaller, regular expenses and a trust for larger or long-term needs.

  • What can ABLE account funds be used for?

    Qualified disability expenses like education, housing, medical care, and transportation. Funds must be used carefully to avoid tax or benefit issues.

  • What happens to the money in an ABLE account when the beneficiary passes away?

    Funds may be subject to Medicaid payback unless used or transferred according to current law.

  • How does a trustee decide what to pay for from a special needs trust?

    The trustee uses discretion, based on the beneficiary’s needs and benefit rules, to provide for items not covered by government programs.

Let’s Talk About Your Options

Personalized Planning Starts with the Right Questions

Every family’s situation is different. Whether you're managing an inheritance, planning for the future, or just starting your research, we can help you explore whether an ABLE account, special needs trust, or both is the right fit for your loved one.