ABLE Accounts in 2024: Save Up to $18,000 Annually

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Ashley Day Law

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Feb 05, 2024

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Alabama - Gulf Coast

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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. Starting in 2024, the annual limit on contributions to ABLE accounts will be $18,000, up from $17,000 in 2023. Through the end of 2025, ABLE account owners who work can contribute their employment income to these savings vehicles even beyond the per-year deposit limit. (Learn more about these rules under the ABLE to Work Act.)

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.

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Planning for Aging Parents With Elder Law in Fairhope, AL

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arrangements.Elder Law PlanningThe firm helps older adults prepare for potential incapacity, care expenses, and changes in living arrangements.Estate PlanningAshley Day Law prepares documents intended to communicate personal wishes and support appropriate asset transfers.Special Needs PlanningThe practice assists families planning for loved ones with disabilities or special needs.Probate and Trust AdministrationThe firm provides guidance to executors, trustees, conservators, and other individuals serving in legal or fiduciary roles.Verified Ashley Day Law Contact InformationAshley Day Law, LLCAttorney: Ashley DayAddress: 8335 Gayfer Road Extension, Suite B, Fairhope, AL 36532County: Baldwin County, AlabamaPhone: 251-277-3377Website: https://ashleydaylaw.com/Practice Areas: Elder Law, Estate Planning, Special Needs Planning, Probate and Trust AdministrationCounties Served: Baldwin County and Mobile CountyAdditional Office: Edwardsville, IllinoisThe firm's website uses ZIP code 36533 for 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exploitation can involve the improper use of someone's money, property, or financial authority.Some older adults become vulnerable because of isolation, cognitive changes, or dependence on other individuals.Potential Warning SignsThese may include:Unexplained withdrawalsSudden changes in financial arrangementsMissing money or propertyPressure to sign documentsUnexpected changes to beneficiariesUnusual requests for financial assistanceNew individuals controlling financial communicationLegal Planning ToolsAppropriate powers of attorney, trusts, and other arrangements may provide safeguards.However, no document eliminates every risk.Respecting Personal RightsProtecting an older adult should not involve unnecessarily removing the person's independence.Legal interventions should respect individual capacity and applicable rights.When Exploitation Is SuspectedFamilies may need assistance from an attorney, financial institution, Adult Protective Services, or law enforcement, depending on the situation.Ashley Day Law specifically identifies protection against elder abuse and financial exploitation within its elder law practice.Guardianship and Conservatorship in AlabamaSome individuals lose the ability to make certain decisions because of illness, cognitive changes, or disability.When appropriate legal arrangements are not already in place, families may need to consider court-appointed decision-making authority.GuardianshipGuardianship generally concerns decisions involving personal welfare and care.ConservatorshipConservatorship generally addresses financial affairs and property.Court InvolvementA court determines whether an appointment is legally necessary and establishes the scope of authority.Considering AlternativesDepending on the circumstances, less restrictive arrangements may be available.Supported Decision-MakingAshley Day Law identifies supported decision-making as a potential alternative for certain individuals who can make decisions with appropriate 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Legal ServicesAshley Day Law provides an opportunity for Fairhope families to seek guidance involving Alabama-specific elder law requirements.Estate Planning and Elder Law Work TogetherEstate planning and elder law are closely connected, but they address different priorities.Estate PlanningEstate planning often focuses on how property and assets should be managed or transferred.Elder LawElder law emphasizes healthcare, financial security, incapacity planning, and personal protection during life.WillsA will generally communicates instructions for the distribution of certain assets after death.TrustsDifferent types of trusts can serve different planning purposes.Beneficiary DesignationsCertain accounts and insurance policies transfer according to beneficiary designations.Coordinating the PlanDocuments should be reviewed together to reduce unintended conflicts.Ashley Day Law provides both estate planning and elder law services, allowing families to consider these issues as connected parts 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What elder law services does Ashley Day Law provide?Ashley Day Law provides elder law planning involving durable powers of attorney, advance healthcare directives, Medicaid planning, long-term care planning, guardianships, conservatorships, and financial exploitation protection. The firm also handles estate planning and special needs planning.2. Where is Ashley Day Law located?Ashley Day Law's Fairhope office is located at 8335 Gayfer Road Extension, Suite B, Fairhope, Alabama. Its phone number is 251-277-3377. Families should confirm the mailing ZIP code before sending documents.3. When should an older adult contact an elder law attorney?It is often beneficial to seek legal guidance before a medical emergency, particularly when preparing powers of attorney, healthcare directives, or long-term care plans. Families may also need assistance when circumstances change unexpectedly.4. Does Ashley Day Law help with nursing home Medicaid planning?Yes. Medicaid and long-term care planning are among the firm's elder law services. Eligibility and potential strategies depend on the individual's financial and medical circumstances.5. Can Ashley Day Law assist with guardianship and conservatorship?Yes. The firm identifies guardianships and conservatorships among its services and can provide guidance concerning legal decision-making responsibilities and potential alternatives.Plan Ahead While Protecting Independence and Family RelationshipsPlanning for aging parents involves more than deciding who will inherit property.It requires considering healthcare preferences, decision-making authority, long-term care needs, financial security, and personal independence.Families who begin these conversations early may have more time to evaluate options and prepare appropriate legal documents.A thoughtful elder law plan should reflect the individual's wishes while establishing practical safeguards for changing circumstances.For residents throughout Baldwin County, Ashley Day Law provides legal planning services focused on protecting older adults and helping families navigate important decisions.Led by attorney Ashley Day, the Fairhope practice assists with elder law, estate planning, special needs planning, and probate and trust administration.Whether your family is beginning proactive planning or responding to an immediate concern, understanding the available legal options can be an important step toward greater clarity.Contact Ashley Day Law to discuss your circumstances and learn how its legal services may help address your family's planning needs.Featured Seniors Blue Book ListingAshley Day LawRecommended Main SBB Category: Elder LawAttorney: Ashley DayAddress: 8335 Gayfer Road Extension, Suite B, Fairhope, AL 36532County: Baldwin County, AlabamaPhone: 251-277-3377Website: https://ashleydaylaw.com/Primary Services: Elder law planning, durable powers of attorney, advance healthcare directives, long-term care planning, Medicaid planning, guardianships, conservatorships, asset protection planning, and financial exploitation prevention.Additional Practice Areas: Estate Planning, Special Needs Planning, Probate and Trust AdministrationCounties Served: Baldwin County and Mobile CountyAttorney Licensing: Alabama, Illinois, and MissouriOffice Note: The firm's official website lists ZIP code 36533 while professional directories and Seniors Blue Book list 36532. Verify mailing details directly with the firm.Seniors Blue Book Business Profile: https://seniorsbluebook.com/listings/ashley-day-lawFind Ashley Day Law on Seniors Blue BookLooking for elder law assistance in Fairhope, Alabama?Explore Ashley Day Law through its Seniors Blue Book business listing.Learn about its elder law planning services, protection of decision-making rights, Medicaid-related planning, and legal guidance for older adults and families.Contact Ashley Day Law to discuss your legal planning needs and arrange an appropriate consultation.

Estate Planning in Fairhope, AL

A family may know that someone has a will and still be unsure what to do during an illness, who can help with financial matters, or where important instructions are kept. Estate planning is an opportunity to replace those unanswered questions with a plan that reflects the persons wishes and practical circumstances.Estate planning in Fairhope, AL can address both future transfers of property and planning during life. Ashley Day Law provides estate planning services in Fairhope, including documents and implementation guidance. A productive first meeting begins with goals and family circumstances rather than a predetermined list of forms.What estate planning coversAn estate plan is a coordinated legal arrangement for the matters a person wants addressed if they become unable to act or when they die. The appropriate documents depend on the persons assets, family, preferences, and applicable law.Topics to discuss with counsel can include who should handle financial affairs, how healthcare wishes should be documented, who should receive property, and whether a trust serves a particular purpose. A document should be chosen because it fits the plan, not simply because someone else has one.Start with people and responsibilitiesConsider who is willing and able to carry out each role. A trusted relative may live far away, have limited time, or be uncomfortable managing finances. A good planning conversation includes those practical limitations.Ask prospective decision makers whether they are willing to serve before naming them. Discuss backups and how each person could find the information needed. The attorney can explain the legal duties associated with the proposed role. Ashley Day Law in FairhopePhone: 251-277-3377Coordinating documents and assetsThe firm describes reviewing beneficiary designations and advising clients about funding trusts. These services make implementation a useful focus for the consultation.Bring a list of accounts, property, insurance, and existing documents. Ask how each asset fits with the proposed plan and which follow-up tasks will be required. Request a clear division of responsibility between the firm, the client, and any financial institution or other adviser.The goal is to leave with more than signed papers. Ask how you will know that the intended changes have been completed and what records should be retained.Planning for individual family circumstancesAshley Day Law also publishes services involving caregiver and family agreements, advice to fiduciaries, and planning for loved ones with special needs. Its estate planning materials describe working with clients other professional advisers where appropriate. Explain the family situation fully. Mention blended families, a beneficiary who receives public benefits, a closely held business, or property outside Alabama. These circumstances can change the questions the attorney needs to address.Do not assume that a particular trust, transfer, or beneficiary arrangement is suitable before the attorney reviews the details. Ask for an explanation of the proposed approach, alternatives, and implementation requirements.Related legal servicesThe firms website also identifies elder law, special needs planning, and probate and trust administration.  Ask whether your matter is part of the estate planning engagement or requires additional work.If the immediate concern involves a care bill, an existing trust, or a recent death, explain that when scheduling. It may call for a different kind of appointment than preparing a new plan.Questions that make a planning meeting more usefulA thoughtful consultation should connect your wishes to specific decisions. Consider asking:Which documents fit my goals, and what does each one do?Who should be named for each responsibility, and who should be the backup?What assets or beneficiary designations need further review?What work must happen after documents are signed?How should my instructions and original documents be stored?What changes should prompt a future review?Ask the attorney to explain unfamiliar terms before you approve a plan. If you want an adult child or another adviser involved, discuss how that participation will work and clarify who the client is.Why estate planning matters locally in FairhopeA Fairhope household may have family nearby, relatives in another state, and property acquired before a move to Alabama. The plan should reflect those connections rather than assuming that every decision-maker and asset is local.For people who have relocated to the Eastern Shore, bring older documents to the attorney instead of discarding them or assuming they need no review. Explain where the documents were prepared and what has changed since then.Also consider practical access. If someone needs to help during an illness, will they know whom to call and where to find current instructions? A plan becomes easier to use when the appropriate people understand the process and can locate the necessary information.How to get started1. Write down your main goals and the concerns you most want resolved.2. Gather existing wills, trusts, powers of attorney, healthcare documents, and beneficiary information.3. Prepare an inventory of property, accounts, debts, and insurance.4. Call Ashley Day Law at 251-277-3377 to request an estate planning consultation.5. Ask for the scope of work, fee arrangement, and required preparation materials.6. Complete the agreed signing and implementation steps, then keep a list of unfinished tasks until each is resolved.Practical tip: Use a one-page planning inventory with contact names and document locations. Keep sensitive account credentials separate and ask the attorney about secure storage and appropriate access. Related categoriesElder Law in FairhopeSpecial Needs Trusts Probate and Trust Administration

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Ashley Day Law

Special Needs Trusts 8335 Gayfer Road Extension, Fairhope, Alabama, 36532

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.

Ashley Day Law

Elder Law 8335 Gayfer Road Extension, Fairhope, Alabama, 36532

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.

Ashley Day Law

Estate Planning 8335 Gayfer Road Extension, Fairhope, Alabama, 36532

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.