What are you able to do with your ABLE disabilities savings account? Put your Trust in it.

Oct 31, 17 What are you able to do with your ABLE disabilities savings account? Put your Trust in it.
Spread the love

What are you able to do with your ABLE disabilities savings account? Put your Trust in it.

We have discussed special needs financial planning in a previous post. Since the ABLE account is a new disabilities savings account for special needs financial planning we will provide as much information and clarity as we can. Keep in mind, we are not financial advisers. We are simply offering help for parents. We pass the information on to you with a few resources that you can use to continue your research efforts. Make an informed decision.

Maryland Financial Advocates provides an excellent example of the possible financial benefits of having an ABLE disabilities savings account. They discuss how a special needs trust can be leveraged to fund an ABLE account. They wrote

An ABLE account can play a beneficial role if your child is expecting to receive a small settlement or award, or even an inheritance or gift. In some cases, an ABLE account may even make it unnecessary to go through the time and expense of creating a special needs trust. Here’s how this might work for a child receiving, say, a a $150,000 settlement. Although no more than $14,000 can be deposited into an ABLE account each year, and an individual can have only one ABLE account, there are still options. The child could transfer $14,000 into her ABLE account, and a structured annuity could be purchased with the remaining $136,000 that would fund the ABLE account for a certain amount each month so that the total deposited into the account each year would not exceed $14,000. In this way, a complex special needs trust could be avoided.

Click here for the full article. Come back for additional information on the ABLE disabilities savings account as we further explore what it can do for you.

Leave a Comment

Skip to toolbar