Why financial planning matters
As a parent, you want to ensure your child is secure and cared for throughout their life; especially after you’re gone. Financial planning for a child with disabilities requires a different approach than typical family planning because of SSI and Medicaid resource limits. Without proper planning, an inheritance or gift could disqualify your child from SSI and Medicaid benefits, leaving them without healthcare coverage and monthly income. The good news: several legal tools and accounts exist specifically to help families plan financially while protecting government benefits. Starting early, even while your child is young, gives you time to build financial security without affecting their benefits.
Achieving a Better Life Experience (ABLE)
An ABLE Account (Achieving a Better Life Experience) is a special savings account created specifically for individuals with disabilities. It allows you to save money while protecting SSI and Medicaid benefits.
How ABLE Accounts Work
• Deposit up to $20,000 per year (2026) without affecting SSI
• Medicaid is NOT affected by ABLE account balances
• Money grows tax-free
• Withdrawals are tax-free for disability-related expenses
• Your child owns and controls the account
Your child can open an ABLE account if they:
• Have a disability that began before age 26
• Receive SSI or SSDI, OR have a disability determination from Social Security
• Are a U.S. citizen or resident alien
What Can ABLE Money Pay For?
• Education and training
• Employment support (job coaching, transportation, equipment)
• Home modifications and accessibility
• Medical equipment and therapy not covered by Medicaid
• Recreation and entertainment
• Assistive technology
• Transportation and vehicle modifications
• Dental and vision care
How to Open an ABLE Account
1. Gather documents (Social Security card, ID, proof of disability)
2. Choose an ABLE provider
3. Complete application
4. Make initial deposit
Find ABLE Account Providers:
Visit www.ablenrc.org to find providers in Indiana, compare accounts, and apply online.
Special Needs Trusts
A Special Needs Trust (SNT) is a legal document that allows you to leave money or property to your child without affecting their SSI or Medicaid benefits. Without a Trust: Money left to your child counts as a resource. Since SSI limits resources to $2,000, your child loses SSI and Medicaid benefits. With a Trust: Money is protected. Your child keeps SSI and Medicaid while a trustee uses trust money for additional needs.
How It Works:
• Attorney creates a trust document naming a trustee
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You fund the trust during your lifetime or through your will
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Trustee manages money and uses it for your child’s benefit
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Money doesn’t count against SSI or Medicaid limits
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After you’re gone, trustee continues managing funds
Types of Special Needs Trusts:
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First-Party SNT: Funded with your child’s own money (inheritance, settlement, work earnings). Use when your child receives money from other sources.
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Third-Party SNT: Funded with your money. Best for most families planning ahead.
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Pooled Trust: Managed by a nonprofit on behalf of multiple beneficiaries. Good if you want professional management.
What Trust Money Can Pay For:
• Therapy and medical care not covered by Medicaid
• Dental and vision care
• Recreation, travel, and entertainment
• Private school or higher education
• Home modifications for accessibility
• Assistive technology and equipment
• Job training and employment support
• Personal items and gifts
Trust Cannot Pay For:
Food, shelter, or medical care covered by government programs (this would disqualify your child from benefits).
Creating a Special Needs Trust:
Step 1: Choose an attorney specializing in special needs planning
Step 2: Discuss your goals and who will be trustee
Step 3: Attorney creates trust document
Step 4: Sign and fund the trust (during lifetime or through will)
Step 5: Update insurance and investment accounts to name trust as beneficiary
Step 6: Trustee manages funds according to trust instructions
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Finding a Special Needs Planning Attorney:
The Arc of Indiana
Phone: 317-977-2375
Website: www.arcind.org
Services: Referrals to special needs planning attorneys, reduced fees available
Indiana Disability Rights
Phone: 1-888-463-3262
Website: www.indianadisabilityrights.org
Services: Legal advocacy and attorney referrals
Fort Wayne Bar Association
Phone: 260-422-0463
Website: www.fwba.org
Services: Attorney referral (ask for special needs planning specialists)
Cost: $1,000-$4,000. Many attorneys offer payment plans or reduced fees.