Important: This page provides general information about financial planning options. It is not legal or financial advice. Laws change, and every family's situation is different. Always consult a special needs attorney or certified financial planner before making decisions about trusts, guardianship, or benefits.
Special Needs Trust (SNT)
A legal trust that holds assets for a person with a disability without disqualifying them from means-tested benefits like SSI and MassHealth.
First-Party (d)(4)(A) Trust
Funded with the disabled person's own money (e.g., inheritance, settlement). Must be established before age 65. Remaining funds go to the state at death to reimburse Medicaid.
Third-Party Trust
Funded by family members or others. No age limit, no Medicaid payback requirement. Can be set up in a will or as a standalone trust.
Pooled Trust
Run by a nonprofit (like the Mass Arc Pooled Trust). Individual sub-accounts for each beneficiary. Available at any age.
Key fact: Putting money directly in your child's name — even with good intentions — can disqualify them from SSI and MassHealth. An SNT prevents that.
Source: Social Security Act §1917(d)(4)(A); Mass. General Laws ch. 203E
ABLE Account (Achieving a Better Life Experience)
A tax-advantaged savings account for individuals with disabilities that developed before age 46 (expanded from age 26 as of January 2026). Massachusetts has its own ABLE plan called 'MA ABLE' through MEFA.
Annual Contribution Limit
$20,000/year (2026 limit, adjusted annually). Employed individuals may contribute more under the ABLE to Work Act.
Asset Limit
First $100,000 in an ABLE account is excluded from SSI's $2,000 asset limit. Amounts over $100,000 suspend (but don't terminate) SSI.
Qualified Expenses
Education, housing, transportation, health, assistive technology, employment training, legal fees, and more — broadly defined.
Key fact: An ABLE account can be opened alongside an SNT. They serve different purposes and are not either/or.
Source: ABLE Act of 2014 (26 U.S.C. §529A); MA ABLE — administered by MEFA (mefa.org)
Guardianship & Alternatives in Massachusetts
When your child turns 18, they become a legal adult — even if they have significant disabilities. Massachusetts offers several options:
Full Guardianship
You petition Probate Court. A Medical Certificate and Clinical Team Report (Rogers Monitor for psychotropic meds) are required. Grants broad authority over personal and medical decisions.
Limited Guardianship
Court grants authority only in specific areas (e.g., medical decisions but not finances). Massachusetts courts prefer this when possible.
Conservatorship
Separate from guardianship — this covers financial decisions only. Can be combined with guardianship or standalone.
Alternatives to Guardianship
Supported Decision-Making agreements, healthcare proxy, power of attorney, representative payee for SSI. These preserve more autonomy.
Key fact: Start the guardianship process 6–12 months before your child's 18th birthday. The Probate Court process takes time.
Source: Mass. General Laws ch. 190B, §§5-301 to 5-310; Disability Law Center (dlc-ma.org)
Government Benefits to Protect
These are the benefits that financial planning aims to preserve:
SSI (Supplemental Security Income)
Federal benefit for individuals with disabilities and limited income/assets. $2,000 asset limit (excluding home, one vehicle, burial funds, ABLE accounts up to $100K).
SSDI (Social Security Disability Insurance)
Based on work history (or parent's work history via DAC — Disabled Adult Child benefits). Not means-tested — no asset limit.
MassHealth (Medicaid)
Covers therapies, medications, DME, home health, PCA services, and more. Asset limits apply for some categories but not CommonHealth.
Section 8 / Housing Vouchers
Income-based housing assistance. Long waitlists — apply early. An SNT generally does not count as income for Section 8 purposes.
Key fact: The single biggest mistake families make is putting money in their child's name without an SNT, accidentally disqualifying them from benefits.
Source: SSA.gov; Mass.gov/masshealth
When to Do What — A Rough Timeline
Apply for Early Intervention. If eligible for SSI, apply immediately — benefits can start from birth.
Transition to school-based services. Start an ABLE account if disability onset qualifies (before age 46 as of 2026).
IEP transition planning begins. Start discussing guardianship vs. alternatives with your team.
Begin guardianship petition process if needed (takes 6–12 months). File for SSI adult benefits.
Legal adulthood. Guardianship takes effect. SSI eligibility changes (parent income no longer counts — 'deeming' stops).
Public school services end. DDS (Department of Developmental Services) adult services begin if eligible. Apply for Section 8 now if you haven't.
Massachusetts Resources
Massachusetts' federally designated Protection & Advocacy agency. Free legal information on guardianship, benefits, and rights.
Nonprofit pooled trust option for individuals with disabilities in Massachusetts. No minimum to join.
Massachusetts' official ABLE account program. Open an account online.
Offers free workshops including 'Turning 18' transition planning that covers guardianship and benefits.
Where guardianship petitions are filed. Forms and instructions available online.
Free Printable
MassHealth Cheat Sheet
Phone numbers, word-for-word scripts, and the appeal process that works.
Free Printable
First 30 Days Survival Binder
The exact calls to make, scripts to say, and forms to fill — week by week.