How is this different from a Special Needs Trust or Pooled Trust?

A STABLE account does not replace a Special Needs Trust or Pooled Trust. There are some key differences that are meant to give people living with disabilities and their families more options. 

With a STABLE account:

• There are fewer expenses than setting up a trust. 

• The beneficiary owns the funds and can access them.

• Earnings are tax-free. 

• There’s a yearly limit of $18,000 and a lifetime maximum of $541,000.

• Amounts in a STABLE account are subject to a Medicaid recovery upon the death of the individual with disabilities.

• Funds can be used for food without affecting benefits, and for housing without affecting benefits if spent in the same month as withdrawn from the account. 

With a Special Needs Trust or Pooled Trust:

• You have to set up a trust. 

• The beneficiary has to get approval of the trustee to receive disbursement. 

• The earnings are taxed at trust rates. 

• There are no limits on contributions or balances. 

• Amounts in a Third-Party Special Needs Trust are generally not subject to a Medicaid recovery upon the death of the individual with disabilities.

• Funds can be used for housing, but benefits may be affected.