How is an ABLE account different than a Third-Party Special Needs Trust?
Generally, an ABLE account does not replace a Third-Party Special Needs Trust (“SNT”), but rather works in conjunction with an SNT. An SNT can be used to fund an ABLE account, can encompass non-cash assets, requires an attorney to set up, and can be costly. ABLE accounts are flexible, grow tax-free, and are low-cost to maintain.
For more information, visit our ABLE accounts and SNT’s webinar.
Please consult a lawyer if you have additional questions.
What is ABLE United?
ABLE United is the state of Florida’s ABLE program and is administered by Florida ABLE, Inc., a direct-support organization of the Florida Prepaid College Board. ABLE United offers ABLE accounts in accordance with Section 529A of the Internal Revenue Code. This account is a unique investment and savings tool designed to help Floridians with eligible disabilities save for qualified expenses. Individuals can invest for the future in this tax-advantaged account without impacting resource limits of federal benefits (like SSI, SSDI, Medicaid, SNAP, TANF, HUD Assistance, Section 8, etc.).
What is the ABLE Act?
The Stephen Beck, Jr., Achieving a Better Life Experience (ABLE) Act, a federal law enacted in December 2014, authorizes each state to establish a program that offers tax-free savings and investment options to encourage individuals with a disability and their families to save private funds to support health, independence and quality of life. In July 2015, the state of Florida created Florida ABLE, Inc., to administer Florida’s ABLE Program, ABLE United.
Money contributed to an ABLE account is generally disregarded when determining eligibility for federal benefit programs, such as Supplemental Security Income (SSI) and Medicaid.
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