The primary concern for most families is ensuring that an inheritance doesn't accidentally disqualify their loved one from "means-tested" government benefits like SSI (Supplemental Security Income) and Medicaid. While a Special Needs Trust is the foundation for long-term security, an ABLE Account provides day-to-day flexibility. Together, they create a comprehensive shield for your loved one’s eligibility for SSI and Medicaid.

The goal of a disability plan is to supplement, not replace, the basic support provided by government programs.

While SSI and Medicaid cover "the basics" like healthcare and minimal food/housing support, SNT funds are used to pay for the "extras" that make life meaningful. This includes goods and services directly benefiting the disabled person, such as specialized therapies, electronics, travel, or recreation.

To maintain eligibility, the Trustee should always make payments directly to the provider of the goods or services. Cash should never be given directly to the beneficiary, as it could be counted as income and trigger a reduction in benefits.

Modern disability planning often uses a combination of tools to balance high-level protection with daily independence.

The ABLE Account (The "Wallet"): An ABLE Account is a tax-advantaged alternative or supplement to an SNT. It allows for modest savings (currently limited to $18,000–$19,000 per year) that can be managed by the beneficiary for "Qualified Disability Expenses," including housing and food.

The Special Needs Trust (The "Vault"): Unlike an ABLE account, an SNT has no contribution limits. It is the ideal vehicle for large inheritances or settlements.

Many families use an SNT to hold the bulk of their wealth, with the Trustee making periodic transfers into an ABLE account. This gives the beneficiary a sense of autonomy and a debit card for daily expenses while keeping the family’s legacy safe in the trust