Chartered Special Needs Consultant (ChSNC) Practice Exam - 100 Questions
1. Which organization awards the Chartered Special Needs Consultant (ChSNC)
designation?
A) American College of Financial Services
B) The American College
C) CFP Board
D) National Association of Insurance and Financial Advisors
ANSWER: B
EXPLANATION: The American College awards the ChSNC designation as part of its
professional certification programs.
2. The primary goal of special needs planning is to:
A) Maximize government benefits for the individual
B) Preserve eligibility for means-tested benefits while enhancing quality of life
C) Minimize family financial responsibility
D) Transfer all assets to the disabled individual
ANSWER: B
EXPLANATION: Special needs planning balances preserving benefit eligibility with
improving the individual's quality of life through supplemental resources.
3. Which government program provides health insurance for individuals with
disabilities regardless of income?
A) SSI (Supplemental Security Income)
B) SSDI (Social Security Disability Insurance)
C) Medicaid
D) Medicare
ANSWER: B
EXPLANATION: SSDI provides Medicare coverage after a 24-month waiting period,
regardless of the beneficiary's income or assets.
4. A third-party Special Needs Trust (SNT) is typically funded with:
A) The disabled individual's own assets
B) Assets from parents, grandparents, or other third parties
C) Proceeds from personal injury settlements
D) Government benefit payments
ANSWER: B
EXPLANATION: Third-party SNTs are funded with assets belonging to someone
other than the disabled individual.
,5. What is the resource limit for an individual to qualify for SSI benefits in 2024?
A) $1,000
B) $2,000
C) $3,000
D) $4,000
ANSWER: B
EXPLANATION: The SSI resource limit is $2,000 for an individual ($3,000 for a
couple), excluding exempt resources like a primary home and one vehicle.
6. The "Payback Provision" applies to which type of Special Needs Trust?
A) First-party SNT
B) Third-party SNT
C) Pooled SNT
D) Both A and C
ANSWER: D
EXPLANATION: First-party SNTs (d(4)(A)) and pooled SNTs (d(4)(C)) require
Medicaid payback from remaining trust assets after the beneficiary's death.
7. Under the ABLE Act, the maximum annual contribution to an ABLE account in
2024 is:
A) Equal to the annual gift tax exclusion
B) $15,000
C) $17,000
D) Determined by state program limits
ANSWER: A
EXPLANATION: The annual contribution limit equals the federal gift tax exclusion
($17,000 in 2024), plus additional contributions from the beneficiary's earnings if
working.
8. Which of the following expenses can be paid directly from a Special Needs
Trust without affecting SSI benefits?
A) Food and housing costs
B) Medical expenses not covered by Medicaid
C) Educational expenses
D) All of the above
ANSWER: B
EXPLANATION: Medical expenses not covered by Medicaid can be paid directly,
while food and housing expenses may reduce SSI benefits.
, 9. The "Age 18 Redetermination" process for SSI evaluates:
A) Whether the disability still meets adult criteria
B) The individual's financial resources
C) Both A and B
D) Neither A nor B
ANSWER: C
EXPLANATION: At age 18, SSI recipients are reevaluated using adult disability
criteria and their financial situation.
10. A "Miller Trust" is used to:
A) Qualify for Medicaid when income exceeds limits
B) Protect assets from nursing home costs
C) Provide for a disabled minor child
D) Avoid estate taxes
ANSWER: A
EXPLANATION: Miller Trusts (Qualified Income Trusts) help individuals qualify for
Medicaid when their income exceeds state limits but medical expenses are high.
11. Which Section of the Social Security Act authorizes Special Needs Trusts?
A) Section 1917(c)
B) Section 1614(a)
C) Section 1634
D) Section 1382
ANSWER: B
EXPLANATION: Section 1614(a) of the Social Security Act authorizes Special Needs
Trusts under 42 U.S.C. § 1396p(d)(4).
12. The look-back period for Medicaid asset transfers is:
A) 24 months
B) 36 months
C) 60 months
D) 120 months
ANSWER: C
EXPLANATION: Medicaid has a 60-month (5-year) look-back period for asset
transfers.
13. Which government program has no asset limits for eligibility?
A) SSI
B) Medicaid
C) Section 8 Housing
1. Which organization awards the Chartered Special Needs Consultant (ChSNC)
designation?
A) American College of Financial Services
B) The American College
C) CFP Board
D) National Association of Insurance and Financial Advisors
ANSWER: B
EXPLANATION: The American College awards the ChSNC designation as part of its
professional certification programs.
2. The primary goal of special needs planning is to:
A) Maximize government benefits for the individual
B) Preserve eligibility for means-tested benefits while enhancing quality of life
C) Minimize family financial responsibility
D) Transfer all assets to the disabled individual
ANSWER: B
EXPLANATION: Special needs planning balances preserving benefit eligibility with
improving the individual's quality of life through supplemental resources.
3. Which government program provides health insurance for individuals with
disabilities regardless of income?
A) SSI (Supplemental Security Income)
B) SSDI (Social Security Disability Insurance)
C) Medicaid
D) Medicare
ANSWER: B
EXPLANATION: SSDI provides Medicare coverage after a 24-month waiting period,
regardless of the beneficiary's income or assets.
4. A third-party Special Needs Trust (SNT) is typically funded with:
A) The disabled individual's own assets
B) Assets from parents, grandparents, or other third parties
C) Proceeds from personal injury settlements
D) Government benefit payments
ANSWER: B
EXPLANATION: Third-party SNTs are funded with assets belonging to someone
other than the disabled individual.
,5. What is the resource limit for an individual to qualify for SSI benefits in 2024?
A) $1,000
B) $2,000
C) $3,000
D) $4,000
ANSWER: B
EXPLANATION: The SSI resource limit is $2,000 for an individual ($3,000 for a
couple), excluding exempt resources like a primary home and one vehicle.
6. The "Payback Provision" applies to which type of Special Needs Trust?
A) First-party SNT
B) Third-party SNT
C) Pooled SNT
D) Both A and C
ANSWER: D
EXPLANATION: First-party SNTs (d(4)(A)) and pooled SNTs (d(4)(C)) require
Medicaid payback from remaining trust assets after the beneficiary's death.
7. Under the ABLE Act, the maximum annual contribution to an ABLE account in
2024 is:
A) Equal to the annual gift tax exclusion
B) $15,000
C) $17,000
D) Determined by state program limits
ANSWER: A
EXPLANATION: The annual contribution limit equals the federal gift tax exclusion
($17,000 in 2024), plus additional contributions from the beneficiary's earnings if
working.
8. Which of the following expenses can be paid directly from a Special Needs
Trust without affecting SSI benefits?
A) Food and housing costs
B) Medical expenses not covered by Medicaid
C) Educational expenses
D) All of the above
ANSWER: B
EXPLANATION: Medical expenses not covered by Medicaid can be paid directly,
while food and housing expenses may reduce SSI benefits.
, 9. The "Age 18 Redetermination" process for SSI evaluates:
A) Whether the disability still meets adult criteria
B) The individual's financial resources
C) Both A and B
D) Neither A nor B
ANSWER: C
EXPLANATION: At age 18, SSI recipients are reevaluated using adult disability
criteria and their financial situation.
10. A "Miller Trust" is used to:
A) Qualify for Medicaid when income exceeds limits
B) Protect assets from nursing home costs
C) Provide for a disabled minor child
D) Avoid estate taxes
ANSWER: A
EXPLANATION: Miller Trusts (Qualified Income Trusts) help individuals qualify for
Medicaid when their income exceeds state limits but medical expenses are high.
11. Which Section of the Social Security Act authorizes Special Needs Trusts?
A) Section 1917(c)
B) Section 1614(a)
C) Section 1634
D) Section 1382
ANSWER: B
EXPLANATION: Section 1614(a) of the Social Security Act authorizes Special Needs
Trusts under 42 U.S.C. § 1396p(d)(4).
12. The look-back period for Medicaid asset transfers is:
A) 24 months
B) 36 months
C) 60 months
D) 120 months
ANSWER: C
EXPLANATION: Medicaid has a 60-month (5-year) look-back period for asset
transfers.
13. Which government program has no asset limits for eligibility?
A) SSI
B) Medicaid
C) Section 8 Housing
