From The Law Office of Whitney L. Thompson, PLLC - In this episode, we dive into the key differences and benefits of Special Needs Trusts and ABLE Accounts for families supporting loved ones with disabilities. These tools provide critical financial planning options that allow individuals with disabilities to save money tax-free while preserving eligibility for essential government programs like Medicaid, Supplemental Security Income (SSI), and Social Security Disability Income (SSDI). We explore how these savings vehicles can enhance the quality of life for beneficiaries without compromising their access to public assistance.

We break down the three types of special needs trusts available in Texas—third-party, first-party, and pooled trusts. Listeners will learn how tools like The Arc of Texas help manage small funds through pooled trusts, while third-party trusts allow parents and family members to safeguard financial assets for their loved ones. Additionally, we discuss ABLE accounts as a flexible option for everyday expenses, noting their limitations, including annual contribution caps and the restriction to one account per individual.

The podcast also examines the strategic use of special needs trusts and ABLE accounts together. For example, special needs trusts can contribute funds to ABLE accounts, enabling families to manage daily expenditures while reserving larger assets for significant purchases. By combining these tools, families can ensure financial stability and maintain compliance with public benefit requirements. We highlight the importance of using these accounts for Qualified Disability Expenses (QDEs), such as housing, transportation, assistive technology, and health-related costs.

For families considering these options in Texas, we provide insight into how a thoughtful approach can preserve benefits and create financial security. Special Needs Trusts and ABLE Accounts offer a pathway to protecting a loved one’s future. Contact The Law Office of Whitney L. Thompson, PLLC, at (281) 214-0173 to schedule a consultation and learn how these tools can work for your family’s needs. Tune in to this episode for a comprehensive guide to these essential planning resources.

The Law Office of Whitney L. Thompson, PLLC

4201 FM 1960 Road West, Suite 360, Houston, TX 77068, United States

(281) 214-0173

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