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A 40-year-old disabled individual receives a $500,000 personal injury settlement. To preserve Medicaid eligibility, which type of trust must be used to hold the settlement?

A third-party special needs trust funded by parents

A first-party (self-settled) special needs trust under 42 USC §1396p(d)(4)(A)

A revocable living trust with the beneficiary as grantor

An ABLE account with no contribution limit

to track

Same family resources

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2026 Statistics

Key Facts: ChSNC Exam

Required Courses

HS 374, HS 375, HS 376

70%

Passing Score

Per course exam

$2,895

Program Tuition

The American College

5-12 mo

Typical Completion

Self-paced online

2 hrs

Exam Duration

Per course final

100

Questions per Course Exam

Approximate

ChSNC requires three courses (HS 374, HS 375, HS 376) plus ethics, with online-proctored final exams. Tuition runs about $2,895 for the package; most candidates finish in 5-12 months self-paced. Each course exam runs about 100 questions in roughly 2 hours with a 70% passing score. Curriculum covers first- and third-party SNTs, ABLE 529A accounts, SSI/SSDI/Medicaid eligibility, government-benefits coordination, life-insurance funding (often ILIT-owned survivorship), and special-needs tax and estate planning.

Sample ChSNC Practice Questions

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1A 40-year-old disabled individual receives a $500,000 personal injury settlement. To preserve Medicaid eligibility, which type of trust must be used to hold the settlement?

A.A third-party special needs trust funded by parents

B.A first-party (self-settled) special needs trust under 42 USC §1396p(d)(4)(A)

C.A revocable living trust with the beneficiary as grantor

D.An ABLE account with no contribution limit

Explanation: When a disabled individual receives funds belonging to themselves (settlement, inheritance directly to them, accumulated wages), the assets must be placed in a first-party SNT under 42 USC §1396p(d)(4)(A). The beneficiary must be under 65 at funding, the trust must be irrevocable, and it must contain a Medicaid payback provision at the beneficiary's death.

2Which feature is REQUIRED in a first-party (d)(4)(A) special needs trust but PROHIBITED in a third-party SNT?

A.An independent trustee

B.A Medicaid payback provision at the beneficiary's death

C.A spendthrift clause

D.A trust protector

Explanation: First-party SNTs under 42 USC §1396p(d)(4)(A) must reimburse state Medicaid programs for benefits paid during the beneficiary's lifetime upon death. Third-party SNTs hold money the beneficiary never owned, so no payback is required — remainder can pass to siblings or charity per the grantor's wishes.

3Grandparents want to leave $250,000 to their disabled grandson. Which planning structure preserves SSI/Medicaid AND allows remainder to pass to non-disabled siblings without Medicaid payback?

A.A first-party SNT created with the grandson's funds

B.A third-party SNT funded through the grandparents' estate plan

C.A pooled trust under 42 USC §1396p(d)(4)(C)

D.An UTMA account naming the grandson

Explanation: Third-party SNTs are the cornerstone vehicle for family inheritance to a disabled relative. Because the funds never belonged to the beneficiary, no Medicaid payback applies — grantors can direct the remainder to siblings, charity, or any chosen heirs. A testamentary or stand-alone irrevocable third-party SNT is appropriate here.

4Which statute authorizes pooled special needs trusts managed by nonprofit associations for groups of disabled beneficiaries?

A.42 USC §1396p(d)(4)(A)

B.42 USC §1396p(d)(4)(B) (Miller trusts)

C.42 USC §1396p(d)(4)(C)

D.IRC §529A

Explanation: Pooled trusts are authorized under 42 USC §1396p(d)(4)(C). They are established and managed by a nonprofit, hold separate sub-accounts for each disabled beneficiary, and pool assets only for investment purposes. They have no age-65 establishment limit (though some states impose transfer penalties) and remainder either stays with the nonprofit or pays back Medicaid.

5Under the Special Needs Trust Fairness Act of 2016, who can establish a first-party (d)(4)(A) special needs trust?

A.Only a parent, grandparent, legal guardian, or court

B.The disabled beneficiary themselves (if competent), or a parent, grandparent, guardian, or court

C.Any U.S. attorney with a power of attorney

D.Only a state Medicaid agency

Explanation: Before December 2016, first-party SNTs could only be established by a parent, grandparent, legal guardian, or court — a frustrating barrier for capable adults with disabilities. The Special Needs Trust Fairness Act amended 42 USC §1396p(d)(4)(A) to allow the disabled individual themselves to establish their own self-settled SNT, eliminating an unnecessary legal expense and dignitary cost.

6An SNT trustee pays the beneficiary's rent directly to the landlord. How does SSA treat this distribution?

A.Not counted — third-party payments to vendors are always exempt

B.Counted as in-kind support and maintenance (ISM), reducing SSI by up to one-third the federal benefit rate

C.Counted dollar-for-dollar as unearned income

D.Treated as a gift, fully exempt from SSI calculations

Explanation: SSI rules consider shelter expenses (rent, mortgage, property tax, heat, gas, electricity, water, sewer, garbage) as in-kind support and maintenance (ISM). When an SNT pays these directly, SSI is reduced by up to one-third of the federal benefit rate (the presumed maximum value rule). Trustees often steer distributions toward non-shelter items to maximize the SSI check.

7What is the maximum annual contribution to an ABLE account for tax year 2025 (excluding ABLE-to-Work)?

A.$15,000

B.$17,000

C.$19,000

D.$100,000

Explanation: ABLE annual contributions are tied to the federal gift tax annual exclusion. For 2025 the limit is $19,000 (matching the gift exclusion). A working ABLE owner who is not contributing to an employer retirement plan may add ABLE-to-Work contributions equal to the lesser of their compensation or the federal poverty line for a one-person household.

8An SSI recipient's ABLE account balance reaches $105,000. What is the consequence?

A.ABLE account is closed automatically and funds are sent to Medicaid

B.SSI cash benefit is suspended (not terminated) until balance falls below $100,000; Medicaid continues

C.Both SSI and Medicaid are terminated and a 5-year lookback applies

D.Only the contributions above $100,000 are taxed at ordinary rates

Explanation: ABLE balances above $100,000 cause SSI cash benefits to be suspended (not terminated) until the balance drops below the threshold. Critically, Medicaid eligibility continues without disruption regardless of ABLE balance. This makes ABLE a uniquely powerful tool to keep Medicaid coverage intact even while accumulating savings beyond the SSI resource limit.

9Under current law (pre-2026 expansion), an ABLE account beneficiary must have a disability that began before what age?

A.Before age 18

B.Before age 22

C.Before age 26

D.Before age 46

Explanation: The ABLE Act of 2014 limited eligibility to individuals whose disability onset occurred before age 26. The ABLE Age Adjustment Act, signed in December 2022, raises the threshold to before age 46, but the change is effective for tax years beginning after December 31, 2025 (i.e., 2026 onward). Until that effective date, the age-26 rule applies.

10A parent has $20,000 left in a 529 college plan for a child who has become disabled and will not attend college. What planning option does federal law permit?

A.Roll the 529 into an ABLE account for the child, subject to the annual ABLE contribution limit

B.Withdraw with no penalty since the child is disabled

C.Roll the 529 into an HSA

D.Donate the 529 directly to the child's first-party SNT

Explanation: Since 2018, federal law allows tax-free rollovers from a 529 college savings plan to an ABLE account for the same beneficiary or a family member, subject to the ABLE annual contribution limit ($19,000 in 2025). This preserves the tax-deferred growth while redirecting funds for qualified disability expenses if college is no longer the goal.

About the ChSNC Exam

The Chartered Special Needs Consultant (ChSNC) from The American College of Financial Services is a three-course advanced designation focused on financial planning for families with members who have special needs. The program covers special needs trusts, ABLE accounts, SSI/SSDI/Medicaid eligibility, life insurance and tax planning for disability families, and ethics. Candidates must already hold a CLU, ChFC, CFP, PFS, or master's in financial planning to enroll.

Questions

100 scored questions

Time Limit

2 hours

Passing Score

70%

Exam Fee

$2,895 program (3 courses) (The American College of Financial Services)

ChSNC Exam Content Outline

25%

Special Needs Trust Planning

First-party (d)(4)(A) and pooled (d)(4)(C) self-settled SNTs, third-party SNTs, ABLE 529A accounts, sole-benefit rule, Medicaid payback, and trustee administration.

20%

SSI / SSDI / Medicaid Eligibility

SSI resource and income limits, SSDI work credits, 1619(a)/(b), Trial Work Period, Medicaid Buy-In, deeming rules, and 1634 vs 209(b) state classifications.

15%

Disability Definitions & Government Benefits

SSA five-step sequential evaluation, SGA thresholds, DAC benefits, representative payees, HCBS waivers, and PASS plans.

15%

Life Insurance for Special Needs Funding

Survivorship life insurance, ILIT design, IRC §2035 three-year rule, policy ownership for SSI preservation, and funding third-party SNTs.

15%

Tax & Estate Planning for Special Needs Families

Compressed trust tax brackets, DNI distributions, SECURE Act eligible designated beneficiaries, Medicaid lookback exemptions, Crummey design, and qualified disclaimers.

Healthcare & Long-Term Care for Disabilities

Medicare disability extension, ALS/ESRD, Part D Extra Help, HCBS and IDD waivers, care managers, and limitations of private LTCi for childhood-onset disability.

Ethics & Professional Practice

The American College Code of Ethics, scope-of-practice referrals, supported decision-making vs guardianship, fiduciary duties, and Special Needs Alliance / ABLE NRC resources.

How to Pass the ChSNC Exam

What You Need to Know

Passing score: 70%
Exam length: 100 questions
Time limit: 2 hours
Exam fee: $2,895 program (3 courses)

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

ChSNC Study Tips from Top Performers

1Build a comparison table of first-party (d)(4)(A), pooled (d)(4)(C), third-party SNTs, and ABLE accounts — funding source, age limits, payback, contribution caps, and sole-benefit rule are tested heavily.

2Memorize the 2025 SSI numbers: $967 federal benefit rate, $2,000/$3,000 resource limits, $19,000 ABLE annual contribution, $100,000 ABLE SSI threshold, and $1,620 non-blind / $2,700 blind SGA.

3Walk through the SSA five-step sequential evaluation and key work incentives (TWP, EPE, 1619(a), 1619(b), PASS, Medicaid Buy-In) — these scenario questions are common.

4Practice life insurance / ILIT structuring problems where survivorship insurance owned by an ILIT pours into a third-party SNT — diagram the parties to lock in the IRC §2035 three-year rule and SSI preservation logic.

5Review the ABLE Age Adjustment Act (age 26 to age 46 effective 2026), SECURE Act eligible designated beneficiary rules for inherited IRAs, and the Medicaid transfer-of-assets exemptions for transfers benefiting a disabled child.

Frequently Asked Questions

What are the prerequisites to enroll in the ChSNC program?

Per FINRA's professional designations database, candidates must hold a CLU, ChFC, CFP, PFS, or a master's degree in financial planning to enroll. Some applicants qualify under an equivalent five-years-of-relevant-experience pathway accepted by The American College. Five years of financial-services experience is also generally required to use the designation publicly.

How is the ChSNC program structured?

ChSNC consists of three online self-paced courses: HS 374 (Introduction to Disability and Lifetime Planning), HS 375 (Financial Planning Process and Environment for Special Needs), and HS 376 (Financial Planning Applications for Special Needs Families). Each course concludes with an online-proctored final exam of approximately 100 questions.

What does the ChSNC program cost and how long does it take?

The program tuition is approximately $2,895 for all three courses (verify current pricing on The American College website). Most candidates finish in 5 to 12 months working part-time, with each course taking roughly 40-60 hours of study. Annual recertification with continuing education and Code of Ethics adherence is required to maintain the designation.

How does ChSNC differ from CFP or ChFC?

ChFC and CFP are broad financial planning credentials. ChSNC is a specialized add-on for advisors serving families with disabled members, covering SNTs, ABLE accounts, SSI/SSDI/Medicaid, and disability-specific tax and estate planning. Most ChSNC holders already hold ChFC or CFP — the prerequisite ensures advisors enter ChSNC with foundational planning training.

Are ChSNC exams open-book?

ChSNC course final exams are online-proctored and closed-book. Candidates may use a financial calculator. The proctoring service monitors via webcam, microphone, and screen-share. Each exam allows roughly 2 hours and requires a 70% passing score; one retake is generally available per course before re-enrollment is required.

What is the difference between a first-party and third-party special needs trust?

A first-party SNT under 42 USC §1396p(d)(4)(A) holds the disabled person's own funds (settlements, inheritances directly to them) and MUST contain a Medicaid payback provision at death. A third-party SNT holds money from family or friends (parents' estate, life insurance), never belonged to the beneficiary, and has NO Medicaid payback — remainder can pass to siblings or charity.