Compare State Special Needs Trust Rules (2026)

Moving to a new state? Want to see how your state compares? Use this tool to view rules side-by-side.

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Key Differences Between States

While ABLE accounts have uniform federal rules, Special Needs Trusts vary significantly by state:

Sole Benefit Rule

Some states require that EVERY dollar spent from an SNT directly benefits the disabled person — no family vacations, no gifts, no household expenses that benefit others.

Strict sole benefit states: Alaska, Colorado, Georgia, Indiana, Kansas, Michigan, Missouri, Nebraska, North Dakota, Pennsylvania, South Dakota

More flexible states: California, Florida, New York, Texas (for third-party trusts)

ABLE Programs

You can enroll in ANY state’s ABLE program, but some offer state tax deductions for residents:

States with tax deductions: Colorado, Illinois, Indiana, Maryland, Michigan, Missouri, Montana, Nebraska, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Virginia

No income tax (no deduction applies): Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming

Wondering what you can actually spend ABLE funds on? See our complete guide to ABLE qualified expenses.

Medicaid Recovery

All states require Medicaid payback from first-party SNTs, but practices vary. Third-party SNTs avoid payback entirely — a major advantage when planning family inheritances. States also differ in their Medicaid waiver programs — the home and community-based services many families depend on.

Understand the trust types you’re comparing in our Complete SNT Guide, and get full context on ABLE programs from our ABLE Accounts guide.

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Comparison data updated February 2026.