» Special Needs Trusts

No. An ABLE account has contribution limits and tax advantages, while an SNT can hold larger sums and cover more expenses. They can be used together.

• First-Party SNT – remaining assets must reimburse Medi-Cal.
• Third-Party SNT – remaining assets are distributed per the trust creator’s wishes.
• Pooled Trust – may retain funds for the nonprofit or distribute as agreed.

No. When properly structured, the trust does not count as a resource, preserving the beneficiary’s benefits.

It must comply with state and federal requirements. An attorney specializing in estate planning or disability law should draft the trust to ensure compliance.

Trustees may include parents, relatives, professional fiduciaries, or nonprofits in pooled trusts. The trustee must manage funds carefully and follow rules to protect benefits.

Funds can be used for supplemental needs such as education, medical/dental care, hobbies, recreation, caregivers, personal items, electronics, or transportation. They cannot be given directly as cash to the beneficiary.

• First-Party SNT – funded with the beneficiary’s own assets; requires Medicaid payback when they pass away.
•  Third-Party SNT – funded by parents or relatives; no Medicaid payback; used in estate planning.
•  Pooled Trust – managed by a nonprofit; combines funds while keeping separate accounts.

To ensure the person with disabilities retains eligibility for benefits, has supplemental funds for quality-of-life expenses, and receives long-term financial protection after caregivers are gone.