ABLE Accounts vs. Special Needs Trusts: What Florida Families Should Know Before Choosing

Randy Narkir, Esq.
Aug 14
4 min read

A single lit candle glowing in darkness, symbolizing remembrance and grief after a parent’s passing in Florida.

Planning for the future of a loved one with special needs isn’t just about love, it’s about strategy. For many Florida families, two powerful tools stand out: ABLE accounts and special needs trusts (SNTs).

Both are designed to protect eligibility for vital benefits like Medicaid and SSI, while giving your loved one access to financial resources. But they serve different purposes and understanding when to use each can make all the difference in your planning.

What Is an ABLE Account?

An ABLE account (Achieving a Better Life Experience) is a tax-advantaged savings account that allows individuals with disabilities to save and spend money for disability related expenses without losing their public benefits.

In Florida, these are offered through ABLE United, which provides no-cost enrollment and multiple investment options.

Key features:

Annual contribution limit of ~$18,000 (as of 2025)
No effect on SSI/Medicaid if the account stays below $100,000
Tax-free investment growth and withdrawals for qualified expenses
Funds controlled by the beneficiary or their guardian

Eligibility:

The individual must have a qualifying disability that began before age 26 (though legislation may increase this age cap soon).

What Is a Special Needs Trust?

A Special Needs Trust (SNT) is a legal structure that holds money or assets for a person with disabilities without counting those assets against Medicaid or SSI eligibility limits.

There are two main types:

First party SNTs funded with the beneficiary’s own assets (like settlements or backpay) Read more
Third party SNTs funded with assets from someone else (like parents or grandparents) Read more

A trustee manages the funds and can use them to pay for things that improve the beneficiary’s quality of life travel, therapy, private care, adaptive equipment, education, and more.

Medicaid payback:

Required for first-party SNTs
Not required for third-party SNTs

When Should You Use One vs. The Other?

Both tools preserve benefits, but they do so in different ways. Think of them as serving complementary roles.

Use an ABLE account when:

Your loved one is capable of managing some expenses
You’re planning for day-to-day or short-term financial needs
You want tax-free growth and control over spending

Use a Special Needs Trust when:

You're planning for long-term care or larger assets (e.g., life insurance, inheritance)
You need professional oversight from a trustee
Your loved one cannot or should not manage funds on their own

Florida Perspective: What Makes Our State Unique

Florida’s ABLE United program is among the most accessible in the country. But there are still critical details that can affect your planning:

The $100,000 SSI cap on ABLE accounts is strictly enforced
Misuse of ABLE funds (such as paying rent improperly) can impact benefits
Florida courts may require approval for trusts involving minors or settlements
Some Medicaid Waiver programs in Florida interact differently with trusts vs. ABLE accounts

In short: small missteps can have big consequences. That’s why structure, timing, and clarity are everything.

Real Life Example: Two Florida Families, Two Different Paths

The Johnsons Fort Lauderdale:

Their 21-year-old son, Aiden, has autism and works part-time. They set up an ABLE account so he could save earnings and cover routine expenses without losing his SSI or Waiver eligibility.

The Perezes Pembroke Pines:

Their 9-year-old daughter, Leila, inherited $35,000. They used a third-party special needs trust to preserve her benefits and build a longer-term support system funded by life insurance.

Different tools. Same goal: peace of mind and protection.

Can You Use Both?

Yes, and when used together with intention, ABLE accounts and special needs trusts can create a more complete, resilient plan.

Think of the ABLE account as your flexible, day-to-day tool: it gives the beneficiary a sense of control, independence, and dignity, especially when used for smaller, recurring expenses.

The special needs trust, on the other hand, is your structured, long-term foundation: it’s where larger gifts, inheritances, or strategic assets can be safely held and managed, especially when ongoing supervision is needed.

Used together, they allow families to support their loved one’s future from multiple angles, balancing independence with protection, flexibility with security.

Final Thoughts

Planning for a loved one with special needs is deeply personal. It’s not about choosing between options; it’s about crafting a strategy that reflects your family’s values, your child’s unique abilities, and the realities of public benefit systems in Florida.

ABLE accounts and special needs trusts aren’t just legal tools; they’re instruments of possibility. When used thoughtfully, they allow your loved one to access the care they need, the life they want, and the dignity they deserve.

You’ve already taken a meaningful step by exploring your options. When you're ready to move from understanding to action, make sure you're guided by clarity, not confusion and always by love.