The “Achieving a Better Life Experience” Act (“ABLE” Act) is
designed to benefit disabled persons specifically who are receiving Medicaid
and/or SSI.
The ABLE account is established as part of Section 529 of
the Revenue Code and allows a disabled individual to maintain receipt of SSI
benefits even though the SSI recipient has an ABLE account that contains assets
up to but not exceeding $100,000.00.
If the account grows above that amount, the SSI benefits will be held in
suspension until the account drops below $100,000.00, at which time the SSI
payments will resume.
Likewise, a Medicaid recipient will not lose eligibility
based on assets held in an ABLE account even if the size of the account
exceeds $100,000.00. However, similarly
to a (d)(4)(A) trust, the ABLE account is subject to a Medicaid payback
provision upon the death of the Medicaid recipient.
An individual who is receiving SSI or disability benefits
under Title II of the Social Security Act is eligible to use an ABLE account for
“qualified disability expenses” which include:
·
Education
·
Housing
·
Transportation
·
Employment Support
·
Health and Wellness
The State must create the means to establish the ABLE
Account (similarly to 529 accounts) and, although lawmakers have introduced bills, Oklahoma has not yet had time to get
that completed.
The ABLE Account provides another relatively simple way of
accumulating funds in a significant amount for the benefit of a disabled
person, and once it is implemented by the states, it is a potentially useful
tool in planning for the long term assistance for a disabled person. It will take months before the details become
clearer on how an ABLE account will work, but it may well be another tool in
the estate planning tool box in serving individuals with disabilities.
Curtis J. Shacklett, Esq.
Barber & Bartz, P.C.
525 S. Main St., Ste. 800
Tulsa, OK 74103-4511
Telephone: (918) 599-7755
Facsimile: (918) 599-7756
Email: cshacklett@barberbartz.com
Website: www.barberbartz.com
