ABLE Account vs Special Needs Trust: Complete 2025 Guide

If you’re confused about whether you need an ABLE account, a Special Needs Trust, or both — you’re not alone. After 15 years of navigating this for my own family, here’s the clear answer I wish someone had given me.

The Short Answer

Most families benefit from using BOTH. They’re not competing options — they’re complementary tools that work together to give your child maximum protection and flexibility.

• ABLE Account: Your “checking account” — quick access to $19,000/year for daily expenses like therapy, equipment, and activities
• Special Needs Trust: Your “vault” — unlimited protection for large assets like inheritance, lawsuit settlements, or gifts over $2,000

Complete Comparison Table

When to Use ABLE Only

An ABLE account alone may be enough if:

• Total assets to protect are under $19,000
• Disability began before age 26
• You need quick, flexible access to funds
• You can’t afford attorney fees right now

When You MUST Have an SNT

A Special Needs Trust is essential when:

• Receiving an inheritance of any size
• Getting a lawsuit settlement (often required by courts)
• Assets exceed the $19,000/year ABLE limit
• Disability began after age 26 (ABLE not available)
• Family wants to leave money that avoids Medicaid payback

The Power Play: Using Both Together

Here’s what smart families do:

1. Open an ABLE account first — it’s free and takes 15 minutes
2. Set up an SNT when you have larger assets to protect
3. Fund the ABLE from the SNT — the SNT can contribute $19,000/year to the ABLE for easy access
4. Use ABLE for daily expenses — therapy, equipment, activities
5. Keep the bulk in the SNT — protected from Medicaid spend-down

This combo gives you the best of both worlds: flexibility for day-to-day needs AND ironclad protection for larger assets.

Quick Quiz: What Do YOU Need?

Find Your State’s Specific Rules

Each state has different requirements for SNTs and different ABLE programs. Find your state for specific guidance:

Common Mistakes to Avoid

• Waiting too long — Set up protection BEFORE you receive assets, not after
• Using a generic attorney — Find someone who specializes in special needs planning
• Putting assets in your child’s name — This can disqualify them from benefits immediately
• Thinking “my child doesn’t have enough to worry about” — Even $2,001 can cause problems
• Forgetting to update your will — Direct inheritance destroys benefits; SNT provisions are essential

Ready to Take Action?

1. Find your state — Click here to select your state
2. Use the calculator — Get a personalized recommendation
3. Download the checklist — Prepare for your next steps
4. Consult an attorney — Free initial consultations available

Last updated December 2025. I review and update this guide quarterly.