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For nearly a decade, people with disabilities have had the
option to accumulate savings in a special tax-free account – without risking
their means-tested public benefits. In 2024, the annual limit on how much money
one can deposit into these savings vehicles, known as ABLE accounts, will rise,
allowing individuals to add up to $18,000 per year.
What Is an ABLE Account?
Many people across the disability community rely on such
government assistance as Medicaid, Supplemental Nutrition Assistance Program
(SNAP) benefits, or Supplemental Security Income (SSI). Yet having too many
assets to their name can disqualify them from receiving these often critical
benefits. For example, in most states, the resource limit to qualify for
Medicaid is just $2,000. In 2014, Congress signed the Achieving a Better Life
Experience (ABLE) Act into law to help address this issue.
Individuals with an ABLE account can save up to a total of $100,000, tax-free, while remaining eligible for public assistance programs. Family members, friends, and others can make contributions to the account, too. The disabled person can then use these funds to help maintain their independence by spending them on disability-related expenses, including assistive technologies, education, transportation needs, vacations, legal fees, and health care.
Unlike a special needs trust (SNT), an ABLE account can be
opened by the individual with the disability. This offers them considerably
more control over the account funds compared with an SNT.
The idea for these accounts derived from the concept of a 529 college savings plan. Similar to a 529 plan, funds in an ABLE account grow tax-deferred over time. In addition, each state administers its own ABLE account program.
To qualify, you must meet the Social Security Administration’s strict definition of “disabled.” You also must have incurred your disability before age 26. (Note that the age cutoff will shift to age 46 come 2026. According to estimates, this age adjustment will result in roughly 6 million more individuals becoming eligible to open these types of savings accounts.)
Why Open an ABLE Account?
People with disabilities are among those most at risk for
financial disaster. According to research, just 10 percent of people of working
age who are living with a disability are financially healthy.
ABLE Accounts, or 529A accounts, can serve as a form of future financial support for these individuals. Yet the vast majority of those who could benefit from these accounts remain unaware of them. As of 2022, 8 million people were eligible for this type of account, yet a mere 120,000 had one in place.
Get Support With ABLE Accounts
To learn more about setting up this type of savings account,
consult with Ashley Day Special Needs & Elderly Law at 251-277-3377.
Durable Power of Attorney Documents: Why They Are IMPORTANT Adults make decisions every day in life. You make financial choices regarding banking, paying bills and managing assets. You decide with whom to socialize and also where to live. You make health care decisions such as consenting to or refusing treatment, obtaining medical records and choose a course of treatment when ill. But what happens if you are too sick or disabled to manage these decisions? Before it is too late, have you prepared for someone to act on your behalf in the event of a crisis or if you are unable to manage decisions on your own? Adding a person to your bank accounts is not the answer because, among other reasons, it is dangerous and places your accounts at risk. Thankfully, there is a key legal tool for substitute decision making called a Durable Power of Attorney. A Durable Power of Attorney means one person (the principal) gives legal authority to another (the agent or attorney-in-fact) to act on behalf of the principal. Durable means the agent can act when the principal loses capacity. A General Durable Power of Attorney permits your agent to manage any part or all of your financial affairs and property. A Health Care Durable Power of Attorney enables your agent to make any or all health care decisions if you become incapacitated. A Living Will allows you to spell out your desired medical treatment regarding life-saving procedures, artificial nutrition and artificial hydration if you become unable to speak for yourself and have a terminal illness, or are in a persistent vegetative state. Choosing the right person as an agent is a very important decision and should be given careful consideration. It should be someone who is trustworthy, honest, knows how to handle money and accepts the responsibility as an agent. This agent owes a duty to the principal called a fiduciary duty, which means the agent has to act in the principals best interest, in good faith and with care, and keep good records. Abuse by an agent or a breach of fiduciary duty can be punishable civilly and criminally. A principal has the control to revoke a Power of Attorney at any time. If you become incapacitated and have not executed Power of Attorney documents, court proceedings called Guardianship and Conservatorship may be needed for someone to obtain decision making authority, which is both time consuming and costly. However, this may be avoided by planning in advance the execution of Durable Power of Attorney documents, which give you greater control and freedom of choice in an affordable manner. This article was written by Donna A. Schuyler, Attorney, who practices in the areas of estate planning, elder law, guardianship and probate. Donna Schuyler Law, PLLC; elderlawboise.com; Phone 208-344-1947
Unsupported elders or elder orphans are individuals in the elder community who face social and/or physical isolation without any available known family members or designated surrogates or caregivers. This growing phenomenon is becoming more common, with AARP reporting that one in five Americans over the age of 65 are at risk of becoming elder orphans. Factors such as higher divorce rates, the decision not to have children, and the boom in this demographics population contribute to this trend. At Bellomo & Associates, an estate planning and elder law firm in Pennsylvania, we understand the unique challenges faced by unsupported elders and offer solutions tailored to their needs. Seeking Support:Being an elder orphan does not imply a lack of financial resources but rather a lack of social support. Fortunately, various support groups and initiatives are emerging to address this issue. Adopting a family, finding a roommate exploring co-housing options, considering intergenerational housing, joining life plan communities, or becoming a member of online communities like Facebook groups for elder orphans (with over 6,000 members already) are some basic solutions to combat isolation. Additionally, we advise clients in similar situations to explore retirement communities or other living arrangements promoting social interaction. Its also worth noting that professional individuals can serve as Healthcare Power of Attorney agents and financial Power of Attorney agents, even if they are not family members, ensuring that essential needs are met if the means to pay for them are available. Exploring Alternative Opportunities:For individuals in this situation, it is crucial to seek out alternative options and establish reliable connections actively. This article highlights the importance of finding people they can rely on or paying for services if they have the means to do so. By engaging with a supportive community, whether through personal relationships or professional assistance, unsupported elders can enhance their quality of life and ensure their well-being as they age. At Bellomo & Associates, we understand the concerns and challenges faced by unsupported elders or elder orphans. We are here to provide comprehensive estate planning and elder law services tailored to your unique situation. Dont navigate this journey alone. Take charge of your future by seeking out the opportunities and support available to you. Visit our website today to learn more about how we can assist you. Be sure to register for our free educational workshop to gain valuable insights and guidance. Together, we can ensure peace of mind and a secure future for you or your loved ones.
This is the question that we get regularly in our law firm and before having our Life Care Planning program and Client Care Advocate, Meg Motter, a licensed clinical social worker on board, my answer was always that it is not something that you can plan for. I believed it to be a decision that was out of your hands. As I have embraced the Life Care Planning model of assisting clients and their families, Ive come to realize that those answers and beliefs were probably incorrect. Im learning through watching Megs work unfold that much can be done well in advance of crisis times to proactively plan for aging in place and avoid entering a skilled nursing facility for long-term care.Now, my answer would be to at least attend one of our monthly Life Care Planning Workshops, take advantage of the free one-on-one Life Care Planning vision meetings with Christine Oyler, and consider retaining the law firm for Megs services to assist you and your family in developing your very own Life Care Plan. There are ways to pay for in-home care and set up other situations that would certainly provide a much better chance of staying out of the nursing facility. Working closely with your Client Care Advocate through your one-year contract with Meg to determine your goals and wishes, research and secure services to assist you in remaining in the least restrictive setting of your choosing, and put those services in place is the answer. Planning is a necessity to avoid the nursing facility and starting early ensures the greatest success. Sure, we can help in the crisis, but starting your Life Care Planning journey before the crisis hits is all the better.If youd like to learn more about Life Care Planning and meet our Client Care Advocate, Meg Motter, LCSW, CDP consider attending one of our monthly Life Care Planning Workshops. Please reach out to the office at 717-208-4546 for more information.
SPECIAL NEEDS PLANNINGParents of children with special needs often worry about how their children would survive and be cared for when their parents are no longer alive to support them. If one of your loved ones is living with a disability, you make sure that all their needs are met daily. But what would happen if you were gone?Also, over the years, parents are required to make many decisions in their childrens best interests, and those decisions are only amplified for parents with special needs children. Often, parents of special needs children dont know what questions to ask and are unaware of the many questions that inevitably will come their way. For the greatest success in securing your childrens futures, its important for parents and other family members to be prepared before its too late. Thats the role of special needs planning.Special Needs Planning involves preparing for the current and future care needs of children and adults with intellectual and/or developmental disabilities, neurocognitive disorders, and/or psychiatric illnesses. It is the best way for a parent, grandparent, and/or guardian to proactively protect and provide for children and grandchildren with disabilities both in the near and not-so-near future for care, housing, and quality of life should something unexpectedly happen to you; for 18th birthdays (automatic transfer of parental rights); for eligibility for government benefits; for change in life circumstances; planning for your childs quality of life, and for your peace of mind.Our special needs planning services include:Special (Supplemental) Needs TrustsRevocable Living Trusts with Special (Supplemental) Needs Trust ProvisionsWills with Special Needs & Spousal Trust ProvisionsGuardianships and ConservatorshipsPlanning for Age 18Planning for Eligibility for Government Benefits (SSI, Medicaid, etc.)Government Benefits AdvisementSchool Law/AdvocacyGuardianship/Conservatorship AdministrationSpecial (Supplemental) Needs Trust AdministrationSpecial needs planning is critical because individuals with special needs often are unable to make appropriate financial decisions for themselves and/or are at risk of financial exploitation by others. Equally important is to maintain eligibility for public benefits such as Supplemental Security Income (SSI) and Medicaid and enable children with special needs to have fulfilling lives.SSI is used to pay for food and housing (primary needs), but it is not nearly enough to live on. Medicaid waiver programs enable access to beneficial services and programs not accessible absent Medicaid eligibility. Generally, beneficiaries of SSI or Medicaid can have little income and, at most, $2,000 in assets. Leaving money to loved ones directly to provide for their care would jeopardize their ability to receive any help from these means-tested government programs. On top of that, the money left to them would have to be spent down to pay for primary needs previously covered by SSI instead of being used to improve the care provided and quality of life. A Special (Supplemental) Needs Trust (SNT) manages resources while also maintaining the beneficiarys eligibility for public assistance benefits.For most families, a third-party irrevocable Special SNT is the most effective way to set aside assets and funds to help the person with special needs. Cash, investment accounts, real estate, or proceeds from a life insurance policy are common ways to fund the trust. The trust can provide for the beneficiary during the parents lifetimes and will provide for the beneficiary when parents are no longer around to care for the beneficiary. Because the SNT owns the assets instead of the beneficiary, the assets are excluded from asset limit tests for SSI or Medicaid. Meanwhile, trust funds can be used to pay for quality-of-life improvements for the beneficiary, such as a phone, an iPad, computer games, trips, travel to visit family, entertainment events, and other activities. The SNT also ensures that funds are used for the benefit of your vulnerable family member and that other relatives, such as siblings, are not left with the responsibility and costs of care.Special needs planning can be a complex and confusing area of the law. Ashley Day Law, LLC will work with you to construct a comprehensive plan customized to your situation and provide you with the tools and information necessary to make sure your loved one is protected, so you have peace of mind knowing your loved one will be taken care of just as you wish.How well you do or dont plan for a special needs family member can have tremendous consequences. Give us a call. Let us help you get it right.
Estate Planning - Ashley Day Law provides comprehensive planning ot individuals and families.We help our clients prepare for unexpected incapacity or death, to ensure both that their family and loved ones have the ability to care for them and that their assets are transferred at their passing in accordance with their goals and wishes. We design and create proper estate plans for our clients, review beneficiary designations, and advise our clients to ensure trusts are funded.Establishing your estate plan is one of the most important steps you can take to protect yourself and your loved ones during your lifetime, in case of disability, and at your death. A well-thought-out and comprehensive estate plan can prevent the need for someone to obtain guardianship in the future, lessen administrative costs associated with the transfer of assets at death, and help smooth familial relations.Our estate planning services include:Forming Living, Irrevocable Protection TrustsAssisting with Beneficiary Designations and Other Non-Probate TransfersDrafting Wills, Living Trusts, Healthcare Directives, Powers of Attorney, and Other Planning DocumentsAdvising Executors, Administrators, Trustees, and GuardiansDeveloping Caregiver Agreements and Other Family AgreementsPost-Mortem PlanningWhile estate planning often includes a variety of items among those listed above, foundational estate planning includes, at least, wills, durable powers of attorney, advance healthcare directives, HIPAA authorizations, and a stand-alone or testamentary supplemental needs trust if you have a loved one with special needs. These instruments are critical to ensure your wishes are followed. A properly designed and implemented estate plan also can help you accomplish additional goals, such as:Providing financial security for your familyEnsuring your property is preserved and passed on to your beneficiariesAvoiding disputes among family members, business owners, or with third parties (such as the IRS)Providing for your childrens or grandchildrens educationProviding for your favorite charityMaintaining control over or ensuring the competent management of your property in case of incapacityMinimizing tax consequences and other costsAvoiding probateProviding adequate liquidity for the settlement of your estateTransferring ownership of your business to your beneficiariesPassing on your values, sense of responsibility, and work ethic to heirsEvery family situation is unique. We work with you and your other professional advisors, including financial planners, accountants, and/or other attorneys who are familiar with your goals and concerns to determine what options work best for you and your family and ensure their implementation.By protecting your estate and yourself, you are protecting your family and sparing them the expense, delay, and frustration that occurs when family members fail to plan. No estate plan is one size fits all. As priorities change, plans can be modified. Its never too early or too late to plan. Give us a call. Were here to help.
Elder Law - Plan to provide for future needs and preserve your legacy.Planning for the future and ensuring that your wishes will be carried out doesnt have to keep you up at night. If you or your loved one is 60+, now is a good time to plan your legal strategies to receive care in your home as you desire and if you may need expensive long-term care. If you have plans in place, we will review them with you and suggest modifications or additions, if any, for you to accomplish your goals.Elder law and estate planning serve two different, but equally vital, functions. The main difference is that elder law is focused on ensuring your care and preserving your assets during your lifetime, while estate planning concentrates on what happens to your assets after you die.Elder law planning is concerned with ensuring that seniors live long, healthy, and financially secure lives. It usually involves anticipating future medical needs, including long-term care. Elder law services include planning for the expected and the unexpected: pre-need planning and crisis planning. Planning is tailored to each clients concerns, goals, family dynamics, and immediate or potential future care needs and may include planning tools such as:Advance Directive for Health Care (Living Will)Healthcare Power of Attorney with Healthcare PreferencesDurable Power of Attorney for Property with Expanded PowersLong-Term Care Sensitive WillsCertification as to Validity of Power of Attorney and Agents AuthoritySpecial Needs Trusts or Other Asset Protection TrustsMedicaid and SSI PlanningLong Term Care PlanningGuardianships and ConservatorshipsUnderstanding/Protecting Against Elder Abuse and NeglectElder law planning also includes your instructions about living arrangements and priorities when it comes to care, which benefits your entire family. Whats more, it can ensure that you are protected from elder abuse or exploitation when you get older or become incapacitated. For seniors, this means resting assured that you will not be a burden to your children, siblings, or other family members if/when you are not able to care for yourselves. For other family members, your planning manifests your love for them, providing peace of mind and the tools needed to ensure care is provided as planned.Finally, elder law covers assistance with guardianship and conservatorship, if needed. Guardianship and/or conservatorship may be necessary to protect and provide for individuals who are unable to care for themselves or live independently, who are unable to understand or manage money and assets, and who may be at risk of abuse and exploitation. Supported Decision Making may be an alternative to guardianship/conservatorship for individuals with limited abilities to retain their decision-making capacity by choosing supporters to help them make choices.When planning proactively, Ashley Day Law works with you to determine your priorities and what future needs must be met and put together the best course of action based on your income and assets to protect your quality of life and reduce unnecessary stress within the family.When crisis planning, our caring and comprehensive approach can help guide you through a difficult process and relieve you of some of your worries.Having to place a loved one in a skilled nursing facility can be an emotionally wrenching experience. To make matters worse, confusion often reigns supreme when determining how to best use income and assets and when navigating the Medicaid application process. Well-meaning family, friends, and even professional advisers may give conflicting or incomplete advice causing families needlessly to lose their property and assets. At Ashley Day Law, we will help you plan for future care needs and how to pay for them, prepare documents for you to enact your plan, and assist with the administration to ensure plans are implemented and assets distributed as instructed.You want to do what is best for the people you love throughout your lifetime and ensure they are taken care of after you are gone. Give us a call.