Congress Passes ABLE Act: Major Victory for Persons with Disabilities and Their Families
This is significant and actionable news for anyone who has a family member with disabilities (with an age of onset up to 26 years old)
Similar to a Roth IRA Congress has just passed an act to allow for the funding of a tax-exempt savings account that can be used for maintaining health, independence and quality of life.
An ABLE Account will provide more choice and control for the beneficiary and family. Cost of establishing an account will be considerably less than either a Special Needs Trust (SNT) or Pooled Income Trust. With an ABLE account, account owners will have the ability to control their funds and, if circumstances change, still have other options available to them. Determining which option is the most appropriate will depend upon individual circumstances. For many families, the ABLE account will be a significant and viable option in addition to, rather than instead of, a Trust program.