Gift Giving for Loved Ones with Disabilities: A Guide for Families
SAN Insights
The Special Assistance Network (SAN) was forwarded this very interesting article from one of its many resources. It is provided here for your information.
Gift-Giving for Loved Ones with Disabilities: A Guide for Families
The holidays are a time for generosity, and many families want to pick out something special for a loved one with a disability. But when that person receives needs-based benefits like Supplemental Security Income (SSI) or Medicaid, certain gifts — especially financial ones — can create problems you might not expect.
The good news is that with a bit of planning, you can give meaningful gifts without putting benefits at risk. Here are a few simple things to keep in mind as you celebrate this season.
Why Some Gifts Can Cause Issues
People who receive SSI, Medicaid, and other important benefits must monitor and limit the amount of their financial resources. Because qualifying for certain insurance and income is dependent upon continuing to meet strict financial limits, gifts that seem harmless can unintentionally affect their benefits.
For example,
Cash gifts can count as income.
Large checks or transfers can cause resource ineligibility. A $10,000 holiday check directly to someone receiving needs-based benefits will almost always create a problem.
High-value assets such as stock, vehicles, or valuable items may also affect eligibility unless handled carefully.
The rules differ from state to state, and they change over time. That’s why it’s important to understand what benefits your loved one receives and how your gift might be treated.
Ways to Give Financially Without Affecting Benefits
You can still give financial support; you just need to route it through the right place. Generous gift-givers can work with a legal professional to determine if they might:
Contribute to a Third-Party Special Needs Trust
If the person has a third-party special needs trust, family members may contribute directly to the trust. These trusts are specifically designed to hold gifts and other resources without affecting SSI or Medicaid.
Use an ABLE Account
ABLE accounts are another safe option, but only one account is allowed per person, and total yearly contributions from all family and friends combined cannot exceed $19,000 ($20,000 in 2026).
If several relatives are planning to give, it’s important for them to coordinate so they don’t accidentally go over the annual limit.
Pay Directly for an Experience or Service
Instead of cash, sometimes it may be appropriate to pay directly for something the person will enjoy, like:
Tickets to a zoo, concert, museum, or sporting event
Art, music, or swimming lessons
Memberships to recreational facilities or community programs
Again, givers must be mindful of how they facilitate such experiences!
The Perfect Personal or Practical Present
Tangible items are commonly a safe choice and shouldn’t affect needs-based benefits. Whether they’re fun, practical, or both, physical gifts are a thoughtful and personal way to show you care. Some sure-to-please ideas include:
Books, games, puzzles, and entertainment.
Electronics or adaptive technology, such as headphones, tablets, or tools that make devices easier to use.
Sensory-friendly items like weighted blankets and fidgets.
Art supplies, craft kits, or hobby materials.
Household or comfort items that make daily life easier.
Many families also look for products designed with accessibility in mind — from adaptive kitchenware to simplified remote controls to items that support mobility or independence.
A Little Communication Goes a Long Way
Because every individual receives a different combination of benefits, even well-intended gifts can have different impacts depending on their situation. A little coordination with the individual, or their family or caregivers can help ensure your gift supports their benefits.
Before giving a gift, consider:
Could this affect the person’s benefits?
If it’s money, is there a safe way to give it (trust, ABLE account, etc.)?
Would a physical gift or experience be easier and safer?
Have you checked in with others who might also be giving this year?
If you’re unsure, a special needs advisor can help you sort through the options in your state.
Give with Confidence
Gift-giving shouldn’t feel stressful. With a little planning and awareness, you can choose presents that bring joy without affecting the benefits your loved one relies on. Whether you choose a tangible item, an experience, or a contribution through a trust or ABLE account, thoughtful giving can make the season bright for everyone.
About this Article: We hope you find this article informative, but it is not legal advice.
“Reprinted with permission of the Special Needs Alliance – www.specialneedsalliance.org.”