Special Needs Planning

The SSI Resource Limit

Supplemental Security Income (SSI) generally is not available to a person whose countable resources exceed $2,000, or $3,000 for an individual with a spouse. The Social Security Administration notes that these statutory limits have not changed since January 1, 1989.

Because the limit is so low, a modest inheritance, lawsuit recovery, or savings account left directly to a loved one can interrupt benefits. Special needs trusts and ABLE accounts are two of the main tools used to hold funds without counting them against this limit.

First-Party vs. Third-Party Special Needs Trusts

A first-party (self-settled) special needs trust holds the beneficiary's own assets. Under 42 U.S.C. § 1396p(d)(4)(A), it must be for a disabled individual under age 65, may be established by the individual, a parent, grandparent, legal guardian, or a court, and must repay the State for Medicaid benefits paid once the beneficiary dies.

A third-party special needs trust holds assets contributed by parents, grandparents, or others. Because the funds never belonged to the beneficiary, it is typically not subject to that Medicaid payback requirement, which makes it a common choice in a parent's estate plan.

Federal law also recognizes pooled trusts run by nonprofit associations under 42 U.S.C. § 1396p(d)(4)(C), which can be an option when a stand-alone trust is impractical.

ABLE Accounts: Eligibility Expanded in 2026

An ABLE (Achieving a Better Life Experience) account is a tax-advantaged account that a person with a disability can use for qualified disability expenses. For SSI purposes, the Social Security Administration excludes up to $100,000 of an ABLE account balance from the beneficiary's resources.

Starting January 1, 2026, a person is eligible if their blindness or disability began before their 46th birthday. Before that date, the condition had to begin before age 26. Families who were previously shut out may now qualify, and an ABLE account can work alongside a special needs trust.