A tremendous breakthrough in Special Needs Planning is the ABLE (Achieving a Better Life Experience) account. In a recent article in Kiplinger’s magazine, Kimberly Lankford points out that a 2014 federal law allows states to create these accounts. Illinois adopted ABLE legislation in 2015.
The law allows individuals of any age who developed a qualifying disability before age 26 to open an ABLE account. Anyone can add to the account, but the total contributions cannot be more than $14,000 each year, and the beneficiary can have only one ABLE account at a time but is allowed to switch plans.
The money may be used for most expenses to benefit the disabled person. It is tax free, and accounts up to $100,000 do not count toward the $2000 limit for Supplemental Security Income benefits.
The ABLE National Resource Center may be contacted at www.ablenrc.com and the Illinois State Treasurer’s office which administers the program may be contacted at 312-814-2677.Consult your estate planning attorney for further information.