January 17, 2018
The Achieving a Better Life Experience (ABLE) Act, which was created by Congress in 2014, allows people with disabilities and their families to save up to $100,000 in accounts for the benefit of a disabled person. The funds can be saved without jeopardizing the individual’s eligibility for Medicaid (Medi-Cal), Supplemental Security Income (SSI) and other government benefits. ABLE accounts may be opened by anyone with a disability as long as the disability began before the person turned 26.
Starting in 2018, the amount of money that can be deposited in an ABLE account per year without jeopardizing public benefits will rise from $14,000 to $15,000. The amount that can be deposited in an ABLE account is tied to the federal gift tax exclusion, which has also risen to $15,000.
Other changes to the program in 2018 include the following:
Setting up an ABLE account is often a solid way to save money toward future expenses for an individual with disabilities. As with most federal or state programs, there are intricacies in the rules that should be understood prior to establishing an account. I encourage you to seek the assistance of a qualified special needs attorney to ensure that you understand the process before tying up your funds.
If you would like to speak to an attorney about the creation of an ABLE Account or to create an ABLE account in conjunction with a Special Needs Trust for your disabled loved one, please contact our Folsom special needs attorneys at (916) 241-9661 to schedule a consultation.