Should I set up an ABLE account or a special needs trust for my child?

Madeline Handy, a specialist for CalABLE accounts in California, says, “We get this question all the time: Should I open an ABLE account or should I open a special needs trust? And really the answer is it's not either/or. It's a yes/and. We definitely recommend looking at both.”

The main differences are that a CalABLE can be opened quickly and has a low annual maintenance fee, but there are limits on how much you can contribute. A special needs trust has higher upfront costs because you’ll need an attorney, but there’s no limit to how much money you can save. You can learn more in our article ABLE Accounts and Creating a Special Needs Trust in California.