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Jun 01, 2026
Ensuring you have options is vital when you are caring for someone with a disability—especially when it comes to leaving them money to help their situation. In Florida, there are primarily two methods of leaving a disabled loved one money that won’t hurt their ongoing government benefits: ABLE accounts and special needs trusts. Both have their pros and cons. Understanding ABLE accounts vs. special needs trusts in Florida can be a struggle.
As you navigate through these two options, it may be wise for you to consult with a Florida special needs trust attorney who can help you work through the state’s special needs trust laws as they apply to you. Our firm handles special needs trust cases all the time. Douglas A. Oberdorfer has over 20 years of experience helping clients with their estate planning and elder law needs, including establishing special needs trusts and ABLE accounts. He can help your case, too.
ABLE Accounts vs. Special Needs Trusts
There are many different kinds of trusts in Florida that you can use to protect money and assets from probate and government interference. Trusts are common in a state with an average yearly income of $74,568 and an average property value of $416,800. To establish a special needs trust, you need to be sure that your trust adheres to the federal requirements set by the Social Security Administration (SSA), including defining your condition as a disability.
An Achieving a Better Life (ABLE) account is a tax-advantaged investment and savings account that can be a welcome alternative to a special needs trust (SNT). An ABLE account allows individuals with qualifying disabilities to save without interfering with their ability to receive ongoing Medicaid and Supplemental Security Income (SSI) payments. A special needs trust has no minimum or maximum contribution amount.
A special needs trust lets qualifying disabled individuals protect assets while simultaneously avoiding increasing their income and preventing them from losing their government benefits. Special needs trusts and ABLE accounts can both be reliable, helpful ways to make sure your disabled loved one is protected while still getting their government benefits. Here are some pros and cons of both ABLE accounts and special needs trusts:
- Control: One of the biggest differences between an ABLE account and a special needs trust is how much control the beneficiary has over the assets. In an ABLE account, the beneficiary can access the funds directly. In a special needs trust, the beneficiary has no control over the assets at all. Instead, the trust is managed by a designated trustee. You will need to decide how important control is to you before deciding which to develop.
- Contribution caps: Another significant difference between the two options is the contribution cap. With an ABLE account, the contributions may not exceed the annual contribution limit, which changes slightly every year. According to the SSA website, the cap in 2026 is $19,000. Special needs trusts, however, do not have a contribution cap. There is no limit on how much or how little you want to put into the account.
- Age limit: One of the most frustrating differences between the two options is the age limit that comes with an ABLE account. To benefit from an ABLE account, your disability onset must have occurred before the age of 46. There is no age limit for third-party special needs trusts. All that matters is whether or not you have a qualifying disability and a designated trustee to manage the trust on your behalf.
- Cost: Another substantial difference between an ABLE account and a special needs trust is how much each option may cost you to set up. An ABLE account generally doesn’t cost much. You can set it up yourself online. A special needs trust requires an attorney to draft, and it can end up costing a lot. It’s recommended that you hire a special needs trust lawyer before pursuing either option, if only to see what works for you.
FAQs
Can You Have Both a Special Needs Trust and an ABLE Account?
Yes, you can have both a special needs trust and an ABLE account in Florida. Many families combine both because they tend to complement each other well to protect public benefits while providing the beneficiary with financial independence and flexibility. An ABLE account is optimal for daily spending and small purchases, while an SNT protects the larger assets like inheritances, property, and legal settlements.
What Is the Maximum Amount for a Special Needs Trust?
There is no maximum amount you can contribute to a special needs trust. The trust can be funded to match the long-term needs of the beneficiary. However, depending on the structure of the trust, you may have to pay back a Medicaid provision upon your death if you were the one who funded the trust. However, if you use a third-party trust, you won’t have to pay back that provision. Your lawyer can help you decide which to use.
What Are the Benefits of an ABLE Account?
There are many benefits that come with an ABLE account. The account can allow you to have financial independence while still collecting government benefits. Your earnings grow free of federal income tax, and as long as your withdrawals are used for qualified expenses, they are tax-free as well. Most of all, you have far more control over the account than you would with a special needs trust.
What Can a Special Needs Trust Pay for in Florida?
A special needs trust in Florida can pay for any expense that’s directly related to the enhancement of the beneficiary’s quality of life, primarily when it comes to their disability. An SNT is intended to be used to pay for the beneficiary’s medical needs, but it can also be used to fund education, job training, transportation, housing, groceries, travel, and technology needs.
Be Sure to Hire a Special Needs Trust Lawyer
It’s important to weigh the differences between an ABLE account and a special needs trust before committing to either option. You may even choose to have both, as they can easily help each other. At the Law Office Of Douglas A. Oberdorfer, P.A., we can help you make a decision. Contact us to speak to someone on our team.
