ABLE Accounts in 2024: Save Up to $18,000 Annually
Ashley Day Law
For more information about the author, click to view their website: Ashley Day Law
Feb 05, 2024
Alabama - Gulf Coast
Email US
Click to Email Us
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.
Other Articles You May Like
Understanding Elder Law in Dallas, Texas: A Vital Resource for Aging Adults and Their Families
As seniors and their families navigate the complexities of aging, the need for legal guidance becomes increasingly important. From long-term care planning and guardianship to estate administration and Medicaid eligibility, elder law covers a wide range of issues that affect older adults. If youre searching for information about elder law or an elder lawyer in Dallas, Texas, youre not alone.This blog will help you understand what elder law entails, when to seek an elder lawyer, and where to start your search in Dallas. What Is Elder Law?Elder law is a specialized area of legal practice that focuses on the needs of aging individuals and their families. Elder law attorneysoften referred to as elder lawyersprovide services in areas such as:Long-term care and Medicaid planningWills, trusts, and estate planningGuardianship and conservatorshipPower of attorney and advanced directivesProbate and estate administrationElder abuse protectionThese legal services aim to protect seniors' rights, assets, and quality of life while preparing for future care and decision-making needs. Why You Might Need an Elder Lawyer in DallasDallas is home to a growing senior population, and with that comes an increased need for legal planning. Whether you're managing care for a loved one or preparing your own estate, there are several reasons you might consult with an elder lawyer in Dallas:Planning for Long-Term Care: Elder law attorneys can help families navigate complex Medicaid eligibility rules to fund nursing home or in-home care services.Establishing Legal Documents: Setting up a power of attorney, healthcare proxy, or living will ensures your wishes are followed if you become unable to make decisions.Protecting Assets: An elder lawyer can help structure assets and income to protect them from high long-term care costs, ensuring your legacy is preserved.Guardianship Proceedings: If a loved one becomes incapacitated and hasnt named a legal representative, an elder law attorney can help petition the court for guardianship. Elder Law in the Context of Dallas, TexasIn Texas, elder law practices may include navigating both federal and state-specific laws. Dallas residents face unique considerations, such as:Texas Medicaid eligibility requirementsLocal probate court systemsRegional estate tax planningDallas-specific elder service networks and legal aid resourcesChoosing a lawyer who is familiar with the Dallas area ensures they can provide context-specific advice and connect you to local support systems. When Should You Contact an Elder Lawyer?Its never too earlyor too lateto consult with an elder lawyer. However, proactive planning offers the greatest benefits. Consider seeking legal guidance in the following scenarios:You or a loved one is entering a nursing facilityYoure unsure how to qualify for Medicaid while protecting assetsYou need help drafting or updating a will or trustYou want to appoint someone to manage your healthcare or financesYou're concerned about financial exploitation or elder abuse Finding Elder Law Resources in DallasDallas has a range of trusted legal professionals who specialize in elder law, but finding the right one can be overwhelming. To simplify your search, Seniors Blue Book offers an up-to-date directory of elder law resources and professionals in the area.Start here: Dallas Elder Law Resources on Seniors Blue BookBrowse elder law-specific services and listings here: Dallas Elder Lawyers and Legal ServicesThese resources can help you compare options, understand available services, and connect with local professionals who are committed to helping seniors and their families make informed decisions. Final Thoughts Elder law is an essential part of preparing for the futureemotionally, medically, and financially. Whether you're protecting a loved one or securing your own peace of mind, working with an experienced elder lawyer in Dallas can make all the difference. Taking the time to plan now helps ensure your wishes are honored and your family is protected.
Estate Planning in Colorado Springs: Protecting Your Future and Your Legacy
Estate planning is a crucial aspect of preparing for the future. It involves making decisions about how your assets will be distributed after your death, ensuring that your healthcare needs are met if you become incapacitated, and safeguarding your legacy for future generations. In Colorado Springs, where many seniors are looking to secure their financial futures and provide peace of mind to their families, estate planning is an essential part of the process.Whether youre just beginning your estate planning journey or reviewing an existing plan, understanding the key components is vital. This blog will explore the importance of estate planning, why its crucial for seniors in Colorado Springs, and how you can get started today. What Is Estate Planning?At its core, estate planning is the process of making arrangements for your assets and affairs, ensuring that your wishes are honored after your death or if youre unable to manage your own affairs. The goal of estate planning is to provide clarity and prevent legal complications for your loved ones.For seniors, estate planning includes addressing concerns like:Wills and trusts to ensure your assets are passed on according to your wishesPower of attorney to appoint someone to manage your finances or make medical decisions if you become incapacitatedHealthcare directives to outline your wishes for medical care if you can no longer communicateGuardianship provisions to designate care for dependents, if applicable Why Estate Planning Is Important for Seniors in Colorado SpringsAs you age, planning for the future becomes even more essential. Colorado Springs is home to a large and active senior community, with many individuals looking to ensure that their healthcare, assets, and legacy are managed appropriately.Here are several reasons why estate planning is especially important for seniors:1. Ensure Your Wishes Are FollowedWithout a comprehensive estate plan, state laws will decide how your assets are distributed. This can lead to disputes among family members and may not reflect your wishes. By creating a will or trust, you ensure that your property goes to the people or causes that matter most to you.2. Prepare for Healthcare NeedsAs health conditions change with age, having a plan in place for your healthcare is critical. With healthcare directives, you can express your desires for medical treatment, end-of-life care, and other critical health decisions. Additionally, appointing a durable power of attorney ensures someone can manage your finances and make decisions if youre unable to do so.3. Reduce Stress for Your Loved OnesEstate planning is one of the best ways to reduce the burden on your family members. Without a clear plan, loved ones may have to deal with complex legal processes, which can be emotionally and financially taxing. Having everything in place ahead of time provides your family with peace of mind during a challenging time.4. Avoid ProbateProbate is the legal process by which a deceased persons will is validated, and their assets are distributed. This process can be lengthy and expensive, especially in Colorado, where estates can be subject to probate fees. A well-structured estate plan can help minimize or even avoid probate, ensuring that your beneficiaries receive their inheritance more quickly. Steps to Take for Estate Planning in Colorado SpringsCreating an estate plan is a step-by-step process that often involves professional assistance. Here are the key steps you should consider when planning your estate in Colorado Springs:1. Assess Your AssetsStart by making a list of your assets, including property, investments, retirement accounts, life insurance policies, and personal belongings. This will give you an understanding of what needs to be managed.2. Decide Who Will Make Decisions for YouIf you become incapacitated, youll need someone to make decisions on your behalf. Consider who you trust to act as your power of attorney for both financial and healthcare decisions.3. Create a Will or TrustA will outlines how you want your assets distributed, while a trust can help avoid probate and provide more control over your assets after death. Your legal advisor can help you decide which option is best for your circumstances.4. Appoint a Guardian for DependentsIf you have dependents (such as minor children or family members with disabilities), you should name a guardian to care for them. This ensures that your dependents will be cared for by someone you trust.5. Review and Update Your Plan RegularlyEstate planning is not a one-time task. As your life circumstances changewhether its through a move, marriage, or change in assetsits important to review and update your estate plan accordingly. Estate Planning Resources in Colorado SpringsColorado Springs offers a wealth of professional resources to assist you with your estate planning needs. From legal advisors and financial planners to healthcare professionals and senior resources, you can find the right support in the area to ensure your plan is comprehensive and legally sound.To explore more about estate planning options in Colorado Springs, visit our Senior Resources Directory. You can find trusted professionals and organizations that can guide you through the estate planning process. Final Thoughts: Secure Your Future with Estate PlanningEstate planning is an essential step in protecting your future and ensuring that your wishes are followed. For seniors in Colorado Springs, planning for the future doesnt just give you peace of mindit also helps safeguard your family and loved ones from unnecessary stress and uncertainty. Dont waitbegin your estate planning journey today and ensure that your legacy is protected for generations to come.
Understanding Elder Law in Colorado Springs: A Guide for Seniors and Families
As we age, planning for the future becomes increasingly importantespecially when it comes to legal, financial, and healthcare decisions. Thats where elder law comes in. Whether you're helping a loved one manage their estate or navigating Medicaid planning, having access to the right elder lawyer in Colorado Springs can provide peace of mind and legal clarity during key life transitions.In this blog, well explore what elder law is, why it matters, and how seniors and families in Colorado Springs can benefit from legal guidance tailored to their unique needs. What Is Elder Law?Elder law is a specialized area of legal practice focused on issues affecting older adults. An elder lawyer helps seniors and their families with a range of legal matters, including:Estate planning and willsPowers of attorney and healthcare directivesLong-term care and Medicaid planningGuardianship and conservatorshipVeterans benefitsElder abuse and neglect casesUnlike general practice attorneys, elder law attorneys have experience working with seniors and understand the complexities of aging-related legal issues. Why Elder Law Matters for Seniors in Colorado SpringsColorado Springs is home to a growing population of older adults who are living longer, healthier lives. With that longevity comes the need for thoughtful planning around finances, healthcare, and end-of-life decisions. Elder law helps ensure that your wishes are respected and that your rights are protected, even in times of crisis.A few key reasons to consult an elder lawyer in Colorado Springs include:Avoiding Probate Delays: A well-structured estate plan can help your family avoid the lengthy probate process.Protecting Your Assets: Elder law attorneys can assist with Medicaid planning to help preserve your savings while qualifying for care.Appointing Decision-Makers: Powers of attorney and healthcare directives allow you to designate someone you trust to make decisions on your behalf if you're unable to do so. Finding an Elder Lawyer in Colorado SpringsWhile legal needs are often personal, its important to seek a lawyer who not only understands the law but also the unique challenges older adults face. In Colorado Springs, there are a number of professionals who focus specifically on elder law, providing compassionate and informed legal counsel.When choosing an elder lawyer, consider the following:Do they specialize in elder law or estate planning?Are they familiar with Colorado-specific regulations around Medicaid and senior care?Do they offer consultations to review your unique situation?Are they well-reviewed by other seniors or caregiving families? Local Resources to Help You Navigate Elder LawColorado Springs offers a number of organizations, legal clinics, and professionals who can assist with elder law concerns. Whether you need help drafting a will or want to learn more about long-term care planning, these resources can point you in the right direction.Explore trusted elder law resources and services in Colorado Springs: Colorado Springs Senior Resources DirectoryLearn more about elder law-related services: Elder Law and Legal Services in Colorado Springs Final Thoughts: Planning with ConfidenceNavigating aging is not just about healthits also about making sure your affairs are in order and your wishes are honored. By working with an experienced elder lawyer in Colorado Springs, you can create a plan that brings peace of mind for both you and your loved ones. At Seniors Blue Book, were here to connect you with the information and support you need to make empowered decisions. Whether you're just beginning to explore elder law or you're ready to find a trusted legal advisor, were here to help.
Local Services By This Author
Ashley Day Law
Special Needs Trusts 8335 Gayfer Road Extension, Fairhope, Alabama, 36532SPECIAL 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.
Ashley Day Law
Estate Planning 8335 Gayfer Road Extension, Fairhope, Alabama, 36532Estate 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.
Ashley Day Law
Elder Law 8335 Gayfer Road Extension, Fairhope, Alabama, 36532Elder 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.