ABLE

The ABLE Act in a Nutshell: Shelter Assets Like a Special Needs Trust.

The ABLE Act provides accounts that shelter assets from Supplemental Security Income (“SSI”) and Medicaid in a manner similar to special needs trust. 

Background

The Able Act, HR 5771, was passed on December 19, 2014, enacting the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (the “ABLE Act“). The ABLE Act authorizes the establishment of accounts, similar to 529 education plans for persons with disabilities. While 529 education plans provide for distributions relating to a student’s educational needs, distributions from an ABLE account are for the purpose of meeting an individuals disability expenses.