1. Which of the following is the primary purpose of a Special Needs Trust
(SNT)?
A. To reduce estate taxes
B. To provide supplemental support without jeopardizing government benefits
C. To avoid probate
D. To maximize retirement savings
Answer: B
Explanation: An SNT ensures funds supplement but do not replace government
benefits like SSI/Medicaid.
2. SSI benefits are means-tested. What is the individual asset limit to qualify
(excluding exempt assets)?
A. $1,000
B. $2,000
C. $5,000
D. $10,000
Answer: B
Explanation: SSI requires assets ≤ $2,000 (individual) or $3,000 (couple), with
some exclusions.
3. What type of trust allows a person with disabilities to use their own funds
while still maintaining government benefits?
A. First-Party Special Needs Trust
B. Third-Party Special Needs Trust
C. Revocable Living Trust
D. Testamentary Trust
,Answer: A
Explanation: A First-Party SNT (often funded with lawsuit settlements or
inheritance) preserves benefits.
4. Which of the following is a key feature of an ABLE Account?
A. Unlimited contributions allowed annually
B. Contributions are tax-deductible at the federal level
C. Growth is tax-free if used for qualified disability expenses
D. They must be established by a trustee
Answer: C
Explanation: ABLE accounts allow tax-free growth for disability-related
expenses. Contribution limits apply.
5. A parent wants to leave assets for a child with disabilities without affecting
SSI. The best option is:
A. Gifting directly to the child
B. A third-party SNT
C. ABLE account only
D. Joint ownership
Answer: B
Explanation: A third-party SNT supplements benefits while avoiding
disqualification.
6. Which government program provides income for individuals with disabilities
who have a work history?
A. SSI
B. SSDI
C. Medicaid
D. Medicare
Answer: B
Explanation: SSDI is based on work credits, unlike SSI which is needs-based.
,7. Which insurance policy is often overlooked but crucial for parents of special
needs children?
A. Auto Insurance
B. Homeowners Insurance
C. Life Insurance
D. Dental Insurance
Answer: C
Explanation: Life insurance ensures financial support for the child after the
parent’s death.
8. The Medicaid "look-back period" for asset transfers is generally:
A. 1 year
B. 2 years
C. 5 years
D. 10 years
Answer: C
Explanation: Medicaid looks back 5 years to prevent disqualification due to
improper transfers.
9. Which of the following expenses qualifies under ABLE account rules?
A. Gambling expenses
B. Luxury travel unrelated to disability
C. Housing expenses
D. Gifts to siblings
Answer: C
Explanation: Housing, healthcare, education, and employment support qualify.
10. A pooled trust is most often managed by:
A. The beneficiary
B. A non-profit organization
C. A financial advisor
D. A parent or guardian
, Answer: B
Explanation: Pooled trusts are run by non-profits, pooling resources for
investment efficiency.
11. What is the federal gift tax annual exclusion (2025)?
A. $12,000
B. $17,000
C. $18,000
D. $20,000
Answer: C
Explanation: In 2025, the annual exclusion is $18,000 per donor per recipient.
12. Which estate planning document allows parents to designate a future
guardian for a child with disabilities?
A. Will
B. Trust agreement
C. Power of Attorney
D. Beneficiary designation
Answer: A
Explanation: A will allows parents to name a guardian for a minor or
dependent adult child.
13. Which of the following assets is not counted toward SSI’s resource limit?
A. Savings account
B. Primary residence
C. Stocks
D. Cash value in non-exempt life insurance
Answer: B
Explanation: The primary home is excluded from SSI asset calculations.
14. When is a First-Party SNT required to repay Medicaid after the
beneficiary’s death?
A. Always
(SNT)?
A. To reduce estate taxes
B. To provide supplemental support without jeopardizing government benefits
C. To avoid probate
D. To maximize retirement savings
Answer: B
Explanation: An SNT ensures funds supplement but do not replace government
benefits like SSI/Medicaid.
2. SSI benefits are means-tested. What is the individual asset limit to qualify
(excluding exempt assets)?
A. $1,000
B. $2,000
C. $5,000
D. $10,000
Answer: B
Explanation: SSI requires assets ≤ $2,000 (individual) or $3,000 (couple), with
some exclusions.
3. What type of trust allows a person with disabilities to use their own funds
while still maintaining government benefits?
A. First-Party Special Needs Trust
B. Third-Party Special Needs Trust
C. Revocable Living Trust
D. Testamentary Trust
,Answer: A
Explanation: A First-Party SNT (often funded with lawsuit settlements or
inheritance) preserves benefits.
4. Which of the following is a key feature of an ABLE Account?
A. Unlimited contributions allowed annually
B. Contributions are tax-deductible at the federal level
C. Growth is tax-free if used for qualified disability expenses
D. They must be established by a trustee
Answer: C
Explanation: ABLE accounts allow tax-free growth for disability-related
expenses. Contribution limits apply.
5. A parent wants to leave assets for a child with disabilities without affecting
SSI. The best option is:
A. Gifting directly to the child
B. A third-party SNT
C. ABLE account only
D. Joint ownership
Answer: B
Explanation: A third-party SNT supplements benefits while avoiding
disqualification.
6. Which government program provides income for individuals with disabilities
who have a work history?
A. SSI
B. SSDI
C. Medicaid
D. Medicare
Answer: B
Explanation: SSDI is based on work credits, unlike SSI which is needs-based.
,7. Which insurance policy is often overlooked but crucial for parents of special
needs children?
A. Auto Insurance
B. Homeowners Insurance
C. Life Insurance
D. Dental Insurance
Answer: C
Explanation: Life insurance ensures financial support for the child after the
parent’s death.
8. The Medicaid "look-back period" for asset transfers is generally:
A. 1 year
B. 2 years
C. 5 years
D. 10 years
Answer: C
Explanation: Medicaid looks back 5 years to prevent disqualification due to
improper transfers.
9. Which of the following expenses qualifies under ABLE account rules?
A. Gambling expenses
B. Luxury travel unrelated to disability
C. Housing expenses
D. Gifts to siblings
Answer: C
Explanation: Housing, healthcare, education, and employment support qualify.
10. A pooled trust is most often managed by:
A. The beneficiary
B. A non-profit organization
C. A financial advisor
D. A parent or guardian
, Answer: B
Explanation: Pooled trusts are run by non-profits, pooling resources for
investment efficiency.
11. What is the federal gift tax annual exclusion (2025)?
A. $12,000
B. $17,000
C. $18,000
D. $20,000
Answer: C
Explanation: In 2025, the annual exclusion is $18,000 per donor per recipient.
12. Which estate planning document allows parents to designate a future
guardian for a child with disabilities?
A. Will
B. Trust agreement
C. Power of Attorney
D. Beneficiary designation
Answer: A
Explanation: A will allows parents to name a guardian for a minor or
dependent adult child.
13. Which of the following assets is not counted toward SSI’s resource limit?
A. Savings account
B. Primary residence
C. Stocks
D. Cash value in non-exempt life insurance
Answer: B
Explanation: The primary home is excluded from SSI asset calculations.
14. When is a First-Party SNT required to repay Medicaid after the
beneficiary’s death?
A. Always
