Parents/grandparents fund an SNT that pays supplemental needs without counting against SSI/Medicaid limits.
A Third-Party SNT is funded with assets that never belonged to the beneficiary (parents, grandparents, life insurance) and provides for supplemental needs (travel, entertainment, therapies, equipment) not covered by public benefits. NO Medicaid payback at death — remainder passes to family. Contrast with First-Party SNT (self-settled, has Medicaid payback). Fund via will, ILIT, or lifetime gifts. Trustee must never distribute cash directly to beneficiary.
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$19K/yr contributions grow tax-free for disability expenses without disqualifying SSI/Medicaid.
42 U.S.C. §1396p(d)(4)(A) trust shelters a disabled person's OWN money (settlement, inheritance) from Medicaid.
Employed ABLE beneficiaries not participating in an employer retirement plan can add up to $15,650 on top of the $19K limit.
Non-refundable federal credit up to $1,125 for low/moderate-income permanently disabled or 65+ taxpayers.
SSA Plan to Achieve Self-Support lets SSI recipients shelter income/assets used for training, equipment, business.
SSDI/SSI recipients can test working via Trial Work Period + Extended Period of Eligibility — benefits continue if trial fails.
Out-of-pocket disability-related work costs (equipment, transportation, attendant) reduce SGA-countable earnings.
SSI recipients who are blind can deduct ANY work-related expense (not just impairment-related) from countable income.