New Hampshire Special Needs Trust vs ABLE Account
When your child with a disability turns eighteen, protecting their eligibility for SSI and Medicaid while still allowing them to save and spend becomes a central planning challenge. Two tools dominate this space in New Hampshire: special needs trusts and ABLE accounts. They're not interchangeable — each has distinct contribution rules, asset limits, and practical tradeoffs that determine which one fits your family's situation.
ABLE Accounts in New Hampshire: The 2026 Rules
New Hampshire launched its official ABLE plan through the National ABLE Alliance (savewithable.com/nh) in October 2023, managed by Ascensus with Fifth Third Bank for checking services. This replaced the state's previous partnership with Ohio's STABLE program — existing STABLE NH account holders can keep their Ohio accounts or transfer assets to the NH ABLE Plan.
The current rules for 2026:
- Annual contribution limit: $20,000 per year (increased under the One Big Beautiful Bill Act, now independent of the federal gift tax exclusion of $19,000)
- SSI exclusion: Up to $100,000 in the account is excluded from SSI resources; SSI is suspended if the account exceeds $100,000 (Medicaid continues regardless of balance)
- Eligibility: Disability onset before age 46 (expanded from age 26 effective January 1, 2026)
- Minimum opening deposit: $25
- Annual maintenance fee: $56 (reduced to $31 with electronic delivery)
ABLE accounts function like a flexible spending and savings tool. The account holder (or their authorized representative) can withdraw funds tax-free for qualified disability expenses — housing, transportation, assistive technology, education, healthcare, and personal support services. Funds in the account up to $100,000 don't count against the $2,000 SSI asset limit.
Special Needs Trusts: When ABLE Isn't Enough
An ABLE account has a hard contribution ceiling and a practical balance cap. A special needs trust (also called a supplemental needs trust) doesn't. If your child receives a personal injury settlement, an inheritance, or if the family wants to set aside more than $20,000 per year, a trust is the vehicle.
There are two main types:
First-party (self-settled) trusts hold the disabled individual's own assets — an inheritance they received directly, a lawsuit settlement, or accumulated savings. These trusts must include a Medicaid payback provision: when the beneficiary dies, the state recoups Medicaid costs from any remaining trust assets before distributions to other beneficiaries.
Third-party trusts hold assets contributed by other people — parents, grandparents, or other family members. Because the money was never the beneficiary's, there's no Medicaid payback requirement. Remaining assets at death pass to whoever the trust designates.
Both types, when properly drafted, shelter assets without affecting SSI or Medicaid eligibility. But a trust requires an attorney to draft (typically $2,500–$5,000 for a standalone special needs trust), ongoing trust administration, and a named trustee who manages distributions.
Side-by-Side Comparison
| Feature | ABLE Account | Special Needs Trust |
|---|---|---|
| Setup cost | $25 minimum deposit | $2,500–$5,000 (attorney fees) |
| Annual contribution cap | $20,000 | No statutory limit |
| Account holder control | Direct — debit card, checking | Trustee controlled |
| SSI asset exemption | Up to $100,000 | Entire trust balance |
| Medicaid payback | May apply at death if Medicaid was used after the account was opened | Required for first-party; none for third-party |
| Ongoing fees | $31–$56/year | Trustee fees + tax filings |
| Setup complexity | Online application | Requires attorney |
| Flexibility for daily expenses | High — debit card for qualified expenses | Lower — trustee must approve distributions |
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When to Use Both
For many families, the answer isn't either/or. An ABLE account gives the young adult accessible spending money for daily qualified expenses — bus passes, phone bills, groceries, personal care items. A special needs trust holds larger assets and provides long-term financial security.
A common arrangement: the trust makes periodic distributions into the ABLE account (within the $20,000 annual limit), giving the beneficiary day-to-day spending autonomy while the trust protects the larger pool. This structure also lets the beneficiary practice financial management with real stakes but limited exposure — an important skill-building opportunity for young adults transitioning to greater independence.
The SSI Connection
Any financial planning for a disabled adult in New Hampshire has to account for SSI's strict $2,000 asset limit. The maximum monthly federal SSI benefit in 2026 is $994. Assets above $2,000 that aren't in an ABLE account or a properly structured trust can disqualify the beneficiary from SSI — and losing SSI often means losing Medicaid, which funds the home and community-based services delivered through BDS Area Agencies.
This is why the financial planning piece can't wait until after the guardianship or alternatives decision is settled. The New Hampshire Guardianship & Alternatives Guide covers both the legal authority framework and the financial planning tools in a coordinated timeline so nothing falls through the gaps.
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