Special Needs Planning: What is an ABLE Account?
Do you have a loved one with special needs and/or a disability that interferes with their life? If so, you may be considering making special arrangements for them as part of your estate plan. An ABLE account (Achieving a Better Life Experience) is a unique, tax-advantaged option that can help to provide them with additional financial support without undermining their eligibility for means-tested public benefits. Here, our St. Petersburg special needs planning attorney provides a guide to ABLE accounts in Florida.
The Challenge of Special Needs Planning (Providing Support Without Undermining Benefits)
Families of people with disabilities face a unique legal and financial planning challenge. The goal is to find a way to provide meaningful support without causing the loss of crucial government benefits. Programs like Supplemental Security Income (SSI) and Medicaid are strictly means-tested. Why does that matter? So-called “excess” income or assets can result in ineligibility. In other words, a well-intentioned gift and/or inheritance can jeopardize the recipient’s access to benefits. Even seemingly a modest gift could potentially cause problems. Special needs planning in Florida requires a careful strategy that protects access to these programs while offering financial stability.
An ABLE Account is a Specialized Option for Disabled Individuals
Authorized under federal law and available in Florida, an ABLE (Achieving a Better Life Experience) account is a tax-advantaged savings account specifically designed for individuals with disabilities. These accounts allow eligible people to save up to $18,000 per year (2024) without affecting their eligibility for SSI or Medicaid. The funds in an ABLE account can be used for qualified disability-related expenses, including housing, education, health care, and transportation. Investment earnings grow tax-free. Further, the investment earnings grow tax free.
Note: In Florida, these accounts are available through ABLE United. If you have any questions about setting up an ABLE account, a St. Petersburg special needs planning attorney can help.
A Special Needs Trust is Often the Foundation of a Special Needs Plan
An ABLE account can be a great tool for many people. With that being said, it is not a comprehensive solution for special needs planning for every situation. A Special Needs Trust (SNT) is one of the most powerful and commonly used tools in Florida for families planning for a loved one with a disability. It allows assets to be held in trust and used for the benefit of the disabled individual without disrupting eligibility for public assistance programs. The trust can cover supplemental expenses like therapies, education, recreation, and personal care items. If you are planning to leave money or property to support a special needs loved one as part of your estate, setting up a special needs trust is often the best approach.
Contact Our St. Petersburg Special Needs Planning Lawyer Today
At Fisher & Wilsey, P.A., our St. Petersburg estate planning lawyer has the experience to navigate ABLE accounts. If you have any questions or concerns about special needs planning, please do not hesitate to contact us today for a fully confidential consultation. With an office in St. Petersburg, we handle special needs planning in Pinellas County and throughout the region.
Source:
ableunited.com/
