Compare State Special Needs Trust Rules

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, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Virginia

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

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.

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Comparison data updated December 2025.