ABLE Account Decision Guide Series
Understanding ABLE Accounts, Special Needs Trusts and Pooled Trusts
Is the account revocable?
(Click plus signs for more info.)
An ABLE account may be closed at any time. ABLE funds withdrawn from a closed ABLE account are a countable resource for means-tested benefits.
Certain SNTs or PTs may be revoked while others are irrevocable. For example:
- A first-party pooled trust or a third-party SNT may be either revocable or irrevocable. However, when the beneficiary has the power to revoke it, public benefits may be jeopardized.
- A first-party trust when funded must be irrevocable and if terminated early is subject to a “Medicaid payback” for any Medicaid used during the beneficiary’s lifetime.
- A third-party SNT is normally irrevocable when funded, but if revoked during the beneficiary’s lifetime is not subject to a Medicaid payback.
↵ Restart
Note: Our ABLE Decision Guide Series is designed as an aid to decision making as it relates to establishing and using an ABLE account. This document does not cover every possible issue related to the topic and is not a substitute to more in-depth analysis that may be required in some cases.
