You may have heard of an ABLE account, but not understand what it is or how it works. Creating an ABLE account can be life-changing for persons with disabilities and could potentially be a great choice for you or your child with disabilities. Before you make any decisions, we want you to take a deeper look into what an ABLE account is and the benefits that can come from creating one.
What is an ABLE account?
The ABLE account was created by Stephen Beck, Jr., in 2014; it stands for the Achieving a Better Life Experience Act. According to the ABLE National Resource Center, an ABLE account is a tax-advantaged savings account for people who suffer from disabilities. This account also benefits the families of people who have disabilities. The owner of the account, or the beneficiary, decides who can contribute to the account, which can include friends and families.
How is it beneficial to you?
Many insurance policies do not cover all of the disability-related health expenses or the additional assistance a person with disabilities needs on a daily basis. The ABLE Act helps minimize the financial blow by allowing a way for a disabled individual to have a savings account to pay for necessary services. For example, some of the assistance not covered includes transportation, housing, technology, and healthcare that is not covered by insurance (ABLE National Resource Center).
How does the ABLE Act work in California?
The bad news is that California does not offer this program yet. The good news is that it is just a matter of time until one is up and running. California did authorize the ability to create ABLE accounts but just has been bogged down with putting the regulations in place concerning the implementation and management of the program.
That said, the best news is that and ABLE account program does not have to be established in your state for it to be accessible. If your state does not offer this program, as California currently does not, you are welcome to enroll in it outside of your state. Just make sure that wherever you are enrolling accepts out of state residents (ABLE National Resource Center).
With this understanding in place, don’t wait to learn more about how ABLE accounts can benefit you and your disabled loved ones. This act can allow your family to directly manage the extreme costs of living with a disability. A strategy that combines using ABLE accounts and comprehensive California estate planning, can significantly help you and your family get the help you need now and in the future.
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Kevin Snyder is a husband, father, and an attorney at Snyder Law, PC in Irvine, California. He is all about family and has a passion for educating his community about trust and estate planning, veterans issues, and how to protect what matters most.