ADVANTAGES AND DISADVANTAGES OF ABLE ACCOUNTS
by Thomas D. Begley, Jr., Esquire, CELA Congress enacted and the President has signed legislation known as the Achieving a Better Life Experience (ABLE) Act of 2014. The Act is modeled on 529 Plans and will provide tax-favored accounts for individuals with disabilities to pay for qualified expenses. The advantages of ABLE accounts are as…
OPPORTUNITIES FOR ABLE ACCOUNTS ARE BETTER THAN EVER
The law known as the Achieving a Better Life Experience (ABLE) Act has been substantially amended to provide additional opportunities for individuals with disabilities. The major opportunity is that prior to the amendments, an individual was not eligible to open an ABLE account unless his or her disability occurred prior to age 26. Now, this…
SPECIAL CONSIDERATIONS – PAYABLE ON DEATH (POD) OR TRANSFER ON DEATH (TOD) ACCOUNTS AND OUT-OF-STATE REAL ESTATE
POD and TOD accounts can be very useful. The primary benefit is that assets in the POD or TOD accounts avoid probate. It is often faster to transfer the money directly than it is to wait for the probate process. The disadvantage of POD and TOD accounts are that you usually name an individual to…
WHAT ARE THE ALTERNATIVES TO A SPECIAL NEEDS TRUST?
Gift to Beneficiary. This is not a good idea, because it would make the beneficiary ineligible for many public benefits. These would include: SSI Medicaid New Jersey FamilyCare Veterans Benefits SNAP (Food Stamps) Low Income Home Energy Assistance Program (LIHEAP) and many others Ignore the Person with Disabilities. This is not a good idea, because…