Special Needs Trust:
Pooled Trust:
Third Party Trust:
ABLE Account:
| Trust Type | Special Needs Trust | Pooled Trust | Third Party Trust | ABLE Account |
|---|---|---|---|---|
| Is there an age limitation? | Must be established and funded before age 65 | No age restriction | No age limitation | Beneficiary must have been disabled before age 26 |
| Is there a limit on annual contributions? | No | No | No. A third party trust can be entirely funded after the third party dies | Yes. In 2018, a total of $15,000 from all sources. |
| Is there a limit on the total amount that may be held in the trust or account? | No | No | No | SSI benefit is suspended if the balance gets above $100,000. No maximum (No maximum for Medicaid.) |
| Are the earnings in the account/investment taxed? | No | Yes | Yes | No, if the distributions from the account pay for qualified expenses |
| Who may establish the trust or account? | Parent, grandparent, court or guardian – must use the beneficiary’s own funds | Beneficiary, parent, grandparent, court, or guardian. Managed by a non-profit | Any third party may establish a supplemental needs trust – using only the third party’s funds | Beneficiary or someone acting on the beneficiary’s behalf |
| May the beneficiary be changed? | No. Trust cannot be amended or revoked without the permission of DHS | No. Trust cannot be amended or revoked without the permission of DHS | It depends on the language of the document and whether the third party is dead or alive | Yes, as long as it is a brother, sister, step-brother, step-sister who meets the ABLE Act requirements |
| May distributions be made after the beneficiary’s death, to pay outstanding qualified expenses including a funeral? | No, not until after Medicaid is reimbursed | No | Yes | Yes, as long as it is a brother, sister, step-brother, step-sister who meets the ABLE Act requirements |
| May the State seek reimbursement for Medicaid expenditures? | Yes | Yes, to the extent that the funds are not retained by the Trustee for the benefit of other disabled beneficiaries (up to 30%) | No | Yes |
Based on information from Jeanne Lowery.
Was this article helpful?
0
Thanks for your feedback!
Please complete the Comments or Suggestions form below
Comments or Suggestions?
We want Quest to be your source for important information that you need to succeed at in your work but we need your help:
Was this article helpful? Was it missing something you needed to get the job done?
Tell us what you think, what you know about this article. What are we doing well, and what we could do better.
All fields are required.