It's looking like Congress will likely pass the Achieving a Better Life Experience Act this session, which will allow people to set up ABLE accounts (or 529A accounts) starting in 2015. ABLE accounts are similar to 529 plans, except that the payouts can be used for supplemental care of a disabled person, as long as the person was disabled before they turned 26. Contributions can be made up to $14,000 per year and as long as the account does not exceed $100,000, the account would not affect the disabled person's SSI benefits or Medicaid qualifications. ABLE accounts may prove to be a good way to make gifts or leave property to a disabled child or grandchild without having to set up a supplemental needs trust.
If you have questions about making gifts or leaving property to a disabled family member without disqualifying them for benefits, give us a call at 253.858.5434 to see how we can help.