ABLE Account Attorney San Antonio TX
An ABLE (Achieving a Better Life Experience) account is a financial tool designed to help individuals with disabilities and their families save money without losing eligibility for essential government benefits like Medicaid and Supplemental Security Income (SSI). These accounts allow individuals to set aside funds for qualified disability-related expenses while maintaining access to vital state and federal programs. At Carroll Law Group, we assist individuals and families in Texas with integrating ABLE accounts into their broader estate planning strategy, ensuring both immediate needs and long-term goals are met.
What is an ABLE Account?
ABLE accounts are tax-advantaged savings accounts that are available to individuals with disabilities. These accounts were established by the ABLE Act, signed into law in 2014, and are specifically intended to support individuals who experience significant disabilities before the age of 26. Funds deposited into an ABLE account can be used to pay for a wide range of expenses related to the disability, including education, healthcare, housing, transportation, and employment training. Unlike traditional savings or investment accounts, the funds in an ABLE account do not count against the asset limits that typically disqualify individuals from receiving government assistance programs.
In Texas, ABLE accounts are offered through the Texas ABLE program, which is administered by the Texas Comptroller’s Office. The program provides residents with an easy and accessible way to set up an ABLE account and begin saving for their loved one’s future needs.
Benefits of an ABLE Account
- Maintain Government Benefits: ABLE Accounts allow individuals with disabilities to save up to $100,000 without impacting their SSI benefits. Medicaid eligibility is not affected, regardless of the account balance.
- Tax Advantages: Contributions to an ABLE Account grow tax-free, and withdrawals for qualified disability expenses are also tax-free.
- Flexible Spending: Funds can be used for a variety of disability-related expenses, including housing, transportation, education, healthcare, and basic living expenses.
- Empower Independence: By providing a way to save and manage funds, ABLE Accounts empower individuals with disabilities to take control of their financial futures.
- Accessible to Many: Accounts can be opened in any state with an ABLE program, and many states allow non-residents to participate. Family, friends, and the beneficiary themselves can all contribute to the account.
Who is Eligible for an ABLE Account?
To qualify for an ABLE Account, the individual must have a significant disability that began before the age of 26. In addition to this requirement, they must meet at least one of the following criteria: they must be eligible for Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), or they must have a disability certification from a physician that confirms they meet the necessary eligibility criteria.
ABLE Accounts vs. Special Needs Trusts
While both ABLE Accounts and Special Needs Trusts help individuals with disabilities maintain government benefits, they serve different purposes and have distinct advantages:
- ABLE Accounts: Best for smaller savings goals and more direct management by the beneficiary.
- Special Needs Trusts: Better suited for larger inheritances or settlements and for providing ongoing management by a trustee.
Many families use both tools in tandem to maximize their planning options.
Plan for the Future with Carroll Law Group
At Carroll Law Group, we are committed to helping families of individuals with disabilities navigate their financial planning options. Whether you’re considering an ABLE Account, a Special Needs Trust, or a combination of both, our experienced attorneys can guide you through the process and help you build a plan that meets your unique needs.
Contact us today to learn more about ABLE Accounts and how they can empower your loved one with greater financial independence and stability. Let us help you secure their future and create a lasting legacy of care.