Planning for the needs of your adult disabled child after you can no longer care for them has unique requirements. Family members who have a disabled adult child need to make complicated plans to protect their loved one today and in the future, including estate planning options such as a special needs trust, establishing a guardianship or creating a conservatorship to protect their financial interests. An ABLE Account is a savings account that can protect individuals with disabilities.
ABLE accounts are tax-advantaged savings accounts for individuals with disabilities and their families, according to the ABLE National Resource Center. The 2014 Achieving a Better Life Experience (ABLE) Act limits eligibility to individuals with significant disabilities with an age of onset of disability before turning 26 years of age. Income earned by the ABLE accounts is not taxed. The legislation provides that ABLE savings accounts that will not affect their eligibility for SSI, Medicaid and other public benefits.
ABLE 2019 Facts:
• Your disability must have an onset prior to the age of 26 and you must be receiving Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) benefits.
• In 2019, friends and family can contribute up to $15,000 directly into an ABLE account.
• Savings in an ABLE account are disregarded to determine eligibility for most federally-funded benefits.
• You can have both a special needs trust (SNT) AND an ABLE account.
Illinois ABLE Accounts
Some states offer qualified individuals and families options to establish ABLE accounts. Illinois ABLE savings accounts are tax-free if they are spent on qualified disability expenses including housing, health and wellness, education and training, therapy, basic living expenses and more.
Illinois is part of the National ABLE Alliance, a 17-state consortium that represents more than one-quarter of the nation’s ABLE-eligible population.
Do you have questions about protecting your disabled child with an Illinois ABLE Accounts and special needs trusts? Our experienced estate planning attorneys understand applicable laws and advise you on the best options to protect a disabled person. Contact the Estate & Probate Legal Group at 630.382.8072.