Special Needs Trusts and Estate Plans

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Able Account

Understanding ABLE Accounts

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An ABLE Account is a simple and powerful savings tool designed specifically for individuals with disabilities. It allows someone to save money for everyday needs or future expenses, without losing eligibility for important government benefits

Earnings in an ABLE account grow tax-free, and funds can be used for a wide range of disability-related expenses.

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Helps individuals with disabilities and families understand how ABLE accounts can support savings, qualified disability expenses, and benefit protection.

Who This Is For

This service is right for you if…

  • You are a person with a disability who wants to save money without risking key benefits.
  • You are a parent, guardian, or family member helping manage disability-related expenses.
  • You want a flexible way to pay for everyday needs, housing, education, transportation, health, or support services.
  • You want to compare how an ABLE account can work alongside a Special Needs Trust.

When You Need This

Consider this document when…

  • You want to save more than the usual resource limit while protecting benefits.
  • You receive gifts, birthday money, work income, or extra funds that need a safe place.
  • You need a simple account for qualified disability-related expenses.
  • You are building a larger plan that may include a Special Needs Trust, Power of Attorney, or Letter of Intent.
A Quick, Honest Note

What Happens If You Do Nothing?

Many families don’t realize there’s a benefit-safe way to save — so savings either don’t happen or quietly create a problem.

Saving more than the usual resource limit in a regular account can reduce or interrupt benefits like SSI and Medicaid.

Gifts, birthday money, or work income may have no safe place to go, leaving families unsure how to set funds aside.

Everyday disability-related expenses can be harder to manage without a dedicated, protected account.

An ABLE account lets a person with a disability save and pay for qualified expenses while protecting benefits — and it works well alongside a Special Needs Trust.

What an ABLE Account Does

An ABLE account works like an online savings account where a person with a disability can hold up to $100,000 without affecting their eligibility for SSI. Most states also provide tax advantages, making the account an easy way to save, invest, and protect financial resources.

Families often use an ABLE account to deposit birthday gifts, unexpected money, or excess funds from a checking account to stay under SSI’s $2,000 asset limit.

Why ABLE Accounts Matter

For many individuals with disabilities, asset limits can get in the way of financial independence. An ABLE account offers a safe, protected place to save money for things that improve daily life, from food and housing to assistive technology, education, transportation, or personal support.

Establishing an ABLE account does not impact eligibility for SSI, Medicaid, or other means-tested benefits. The beneficiary remains the owner and retains control over how funds are used.

The Letter of Intent (LOI)

Families often pair an ABLE account with a Letter of Intent, a personal guide that explains the individual's daily routines, needs, preferences, supports, and important contacts.

While not a legal document, the LOI becomes an invaluable resource for anyone who may step in to support your loved one in the future, ensuring continuity, stability, and respect for their wishes.

Who Is Eligible?

You qualify for an ABLE account if your disability began before age 46 (raised from 26 on January 1, 2026) and you either:

  • Receive SSI or SSDI, or
  • Have a written disability diagnosis from a licensed physician.

The account can be opened by the person with the disability, a parent, a legal guardian, or someone with power of attorney.

Contribution Limits

For 2026, contributions from everyone combined can total up to $20,000 per year. If the account owner works and does not participate in an employer retirement plan, they can add up to $15,650 more from their earnings (called ABLE to Work).

Balances up to $100,000 are ignored by SSI, and Medicaid eligibility is never affected by the balance. Money in a 529 college savings plan can also be rolled over into an ABLE account.

When the account owner passes away, remaining funds may first be used to repay Medicaid (the Medicaid payback).

Choosing an ABLE Program

You can open an ABLE account in any state program that accepts out-of-state residents. You are not limited to your home state. Programs differ in fees, investment choices and state tax benefits.

Enter your name and email below and we will take you straight to our state-by-state guide to every ABLE program.

What ABLE Funds Can Cover

Expenses must relate to the individual’s disability and improve quality of life. Common uses include:

  • Education and training
  • Food and housing
  • Healthcare costs
  • Transportation
  • Assistive technology
  • Personal support services
  • Employment support
  • Financial management tools

How ABLE Accounts Affect Government Benefits

ABLE accounts allow individuals to hold more than $2,000 in assets — up to $100,000 — while still maintaining SSI and other benefits

Families often use an ABLE account to deposit birthday gifts, unexpected money, or excess funds from a checking account to stay under SSI’s $2,000 asset limit.

ABLE Account or Special Needs Trust?

Families benefit from having both

ABLE Account or Special Needs Trust?

Together, they provide flexibility, financial protection, and long-term security.

  • The ABLE Account is ideal for short-term savings, day-to-day expenses, and staying under asset limits.
  • • The Special Needs Trust is designed for long-term protection, inheritances, and larger assets — without any limit on contributions and without Medicaid payback.

Together, they provide flexibility, financial protection, and long-term security.

ABLE Account

Achieving a Better Life Experience

ABLE Accounts - Table of Contents

Everything You Need To Know About ABLE Accounts

ABLE Accounts help individuals with disabilities save money to pay for qualified expenses, without being taxed on the earnings – and in most cases, without losing eligibility for specific means-tested benefit programs.

The Overview Of ABLE Accounts

ABLE accounts are specialized bank accounts That are easily set up online and allows a person with a disability to accumulate up to $100,000 and not jeopardize their government benefits. in Most states these accounts are not taxed federally or by the state. They also can be a convenient mechanism toDeposit money from accounts that do count against SSI to ensure that the person with a disability’s accounts do not exceed the $2,000 limitation under many governmental benefits.

A heartwarming moment captures a woman carrying a young girl with Down syndrome on her back in a sunny outdoor setting, symbolizing the joy and support an ABLE account can provide.

Things To Know About ABLE Accounts

  • These accounts are a must for any person with a disability.
  • This accounts should be used in addition to a Special Needs Trust.
  • ABLE accounts can be a place to put monetary gifts from Grandma or Grandpa or other relatives, to ensure those dollars are not counted against governmental benefits.
  • These Accounts are savings accounts that come with tax benefits for individuals with disabilities
  • Establishing an ABLE Account will not affect the individual’s eligibility for SSI, Medicaid, and other means-tested public benefits.
  • The account owner is the beneficiary.

The Purpose of The LOI for Those With Special Needs

The purpose of the letter of intent is to make sure whoever is now supporting your child with a disability, understands your vision for the child, as well as your child’s vision for their future. This ensures, your vision, for the child will continue after you are gone. The letter of intent will contain important contact information for your child, i.e. family members, friends, doctors, neighbors, care providers, and every other person important to your child’s life, including names, addresses, and phone numbers. It should also contain things like your child’s government benefits (social security & special education) and hobbies and other interests that are important to your child’s future. You should also include religious and holiday traditions that are important to your child.

A Letter Of Intent Aids In Preparing For The Future

The letter of intent is a critically important document regarding special needs estate planning for allowing someone (such as a family member or guardian to step in and provide supports for your child with a disability immediately. This task can be overwhelming for someone who is not involved with your child’s day to day life. Whoever is required to step in to support your child with a disability after you are gone will feel confident about being able to support them with this instruction manual.

When An ABLE Account Comes In Handy

Real Examples Of ABLE Uses

Susie has a disability and has been collecting SSI for a number of years. because she has not spent a lot of money recently, her checking account now has nearly $2,000 in it. to make sure she doesn’t run a foul with the $2,000 limitation of assets and still collecting ssi, Susie can take money from her checking account and deposit into her ABLE account to lower the amount of her checking account and still qualify for SSI.
A close-up selfie of a woman and a young boy with Down syndrome, both smiling joyfully, which reflects the hope and support provided by an ABLE account for individuals with special needs.

The Achieving A Better Life Experience Eligibility

Things To Check For

  • Individuals are eligible for an ABLE account if they are already receiving benefits under Supplemental Security Income (SSI) and/or Social Security Disability Insurance (SSDI).
  • If not, they may still be eligible if they certify that they are blind or disABLEd and have a written diagnosis of their condition by a licensed physician.
  • The onset of the disability must have begun prior to age 46.
  • These accounts are to be established by or for a person with a disability.
  • If the person with a disability meets the age criteria and receives SSDI and/or SSI, they are automatically eligible to establish an ABLE account.
  • ABLE accounts can be set up either by the he person with the disability, or that person’s parent, legal guardian or another person with power of attorney.

Contributions and Limits To ABLE Accounts

In 2026, the maximum that everyone combined (family, friends and the account owner) can contribute to one ABLE account in a single year is $20,000.

Each state also sets a lifetime account maximum, the same cap it uses for its 529 college savings plans. In many states that is more than $300,000 per account.

On top of the $20,000 annual limit, an account owner who works and is not enrolled in an employer-sponsored retirement plan may contribute extra earnings, up to $15,650 for residents of the continental U.S. (more in Alaska and Hawaii). This is called ABLE to Work, and it is now a permanent part of the law.

Working account owners who contribute may also qualify for the federal Savers Credit of up to $1,000.

Practical Example Of When An ABLE Account Is Important

ABLE Uses

Johnny has a disability and has been collecting SSI for a number of years. Johnny’s grandmother wants to give him a gift of $5,000. since Johnny has an ABLE account, Johnny instructs grandma to deposit the $5,000 into his ABLE account. Johnny now has $5,000 that he can spend on what he wants or needs, and still qualify for SSI benefits.

Opening & Investing an ABLE Account

As long as a state’s ABLE program allows enrollment by out-of-state residents, you have the freedom to enroll in any state’s ABLE program regardless of where you reside and whether or not your state has established an ABLE program.

State ABLE programs that are open for enrollment nationwide are Ohio, Nebraska, and Tennessee. On the other hand, the Florida ABLE United program is an example of a state ABLE program that only allows enrollment for residents within the state.

Similar to 529 college savings plans, states are expected to provide various options for eligible individuals and families to establish ABLE accounts with different investment strategies. It is crucial to choose an investment option that aligns with your planned use of the ABLE funds and your risk tolerance. You have the flexibility to modify your investment selections within your account twice per year.

Determine Which ABLE Programs Are Accepting Out Of State Programs

Use our quick form to jump to our state-by-state guide to every ABLE program. It shows which programs accept out-of-state residents.

A color-coded map of the United States indicating the availability of ABLE accounts, with most states shaded in green, symbolizing widespread access to ABLE programs across the nation.

Benefits Of ABLE Accounts

A confident professional woman in a white shirt and tie sits in a wheelchair, with a poised and cheerful demeanor, representing the empowerment that able accounts can offer.

Cover the cost of housing and related expenses

ABLE accounts can be used to cover the expenses of the person with a disability. These may include expenses related to:
Education

  • Food
  • Housing
  • Transportation
  • Employment training and support
  • Assistive technology
  • Personal support services
  • Health care expenses
  • Financial management and administrative services

Allow Your Money To Grow Tax-Free

Most states do not tax the interest earned on ABLE accounts at the federal or state level.

Protect Your Government Benefits With An ABLE Account

You can have up to $100,000 in your ABLE account and still qualify for governmental benefits. the Assets in this account do not count when determining governmental benefits.

The Impacts ABLE Accounts Have On Government Benefits

An ABLE account will allow you to have more than $2,000, actually up to $100,000, and allow you to still collect SSI and other governmental benefits. The biggest challenge when getting government benefits is to make sure that you do not accumulate more assets that will disqualify you from collecting SSI, or other governmental programs.

So, Do I Need An ABLE Account Or A Special Needs Trust?

You should have both an able account and a special needs they are both important tools in allowing people with disabilities to live full lives.

The able account is best used as a tool to protect assets on a short-term basis. for instance if you are getting close to the $2,000 asset limitation on your checking account and are collecting ssi, the able account is a good place to take money out of your regular checking account and deposit it in the able account, so that you will continue to be able to collect your government benefits. able accounts are very easy and free to set up. this is one of the reasons why they are a good tool to have. the downside of an able account is when the person with a disability dies the state, medicaid, has the ability to come in in charge back They spent supporting the person with a disability.

The Special Needs Trust is best used as a long-term planning tool. the Special Needs Trust is the ideal location to put money inherited from parents and grandparents. there is no asset limitation on the amount of money that can be deposited into a special needs trust. so while this account has a upper limit of 100,000, the Special Needs Trust has no such limitation, in fact you could have millions of dollars in the Special Needs Trust and still qualify for government benefits. another important difference between the able account and a Special Needs Trust is that when the person With a disability dies, the terms of the trust control where the leftover money goes. whether it goes to that person’s children, or wherever they have designated, Or whatever is designated in the trust itself. another important difference is when the person with a disability dies, the state, Medicaid, has no right to any of the assets in the trust.

Attorneys typically charge in excess of $3,000 for these same documents.

Book a free consultation to learn more about how my services can help you provide financial protection for a child with special needs.

Book An Appointment

Special NeedsTrusts Online is the only online special needs trust platform created by a national disability-law expert and parent, operated by a nonprofit, and designed to guide families in plain English from start to finish without high fees, confusing legal jargon, or risky template forms.

Understand What Payback Provisions Are

If there is any money left in the able account when the person with a disability dies that money will be used to pay any Medicaid liens. this is the major difference between using an able account and a Special Needs Trust.

Other Documents To Protect Your Loved Ones

Letter Of Intent

Craft your Letter of Intent to guide your loved ones through your wishes and values

Click here
POA For Education
Establish your Power of Attorney for Education and ensure seamless decision-making
Click here
Power Of Attorney
Establish your Power of Attorney and secure your financial future
Click here
Health Care Proxy
Create your Health Care Proxy and ensure your wishes are honored.
Click here
First Person Trust
Secure my future today with a personalized First Person Trust
Click here
Special Needs Trust
Draft your Special Needs Trust today for peace of mind tomorrow!
Click here

Meet Tom Sannicandro

I am a special needs planning attorney and an expert in Special Needs Trusts and have been practicing disability law for more than 20 years. I am the father of an adult son with Down syndrome, so I know the challenges that families face when trying to provide a future for all their children. So if you are looking for an attorney for special needs planning, look no further. After years of the practice of law, I thought the best way to give back would be to provide special needs estate planning resources and documents for families with a child with special needs in an easy and affordable way. That is why I created this 501(c)(3) nonprofit corporation to provide families with an affordable way to protect their loved ones. Visit our planning resource center now by clicking here or set up a free appointment with me by clicking here!

Frequently Asked ABLE Account Questions

The Eligible Individual may open and manage an ABLE account independently if they are over the age of 18.

If the Eligible Individual is a minor under the age of 18, is unABLE to open the account, or chooses to open an account but not exercise signature authority, an individual authorized to act on their behalf may open and manage the account as the Authorized Representative.

An ABLE account may be established by the Authorized Representative of an Eligible Individual in the following order of priority:

  • The agent under a Power of Attorney, or if none
  • Conservator or Legal Guardian (of the person and/or property),
  • Spouse,
  • Parent,
  • Sibling, or
  • Grandparent.

By opening an Eligible Individual’s ABLE account, the Authorized Representative is self-certifying that there is no other individual with a higher priority who is willing and ABLE to open and manage the ABLE account as the Authorized Representative.
Eligible Individuals who require the assistance of a trusted service provider also have the option to designate a Care Representative as their agent with authority to open and manage their account using a DurABLE Limited Power of Attorney for the specific management of the ABLE account.

No. Eligible Individuals may only have one ABLE account at any time.
Yes. People with a disability who have an ABLE account who receive Social Security or SSI benefits can deposit their benefits into their ABLE accounts.
The major difference between an able account and a Special Needs Trust is that after the person with a disability passes awayUnder a Special Needs Trust the state / Medicaid Has no right to the Assets in the trust, while in an able account when the person with a disability passes away, the state / Medicaid has a right to charge back for all money spent on the individual with a disability. Another major difference between an able account and a Special Needs Trust is the ease in which they can be set up and used. enable account can be set up online for free and used immediately, well a Special Needs Trust requires special drafting, and making sure that the person’s wheels are tied to the special needs trust. this can all be done using SpecialNeedsTrustsonline.com
Able accounts only affect SSI benefits if there is more than $100,000 in the able account.
the primary benefit of an Able account is allowing the person with a disability to have a savings account that can have more than $2,000 and still qualify for SSI and other government benefits.
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