What is an Illinois ABLE account. An Illinois ABLE account is just one of the special needs planning tools available. ABLE stands for Achieving a Better Life Experience. The act was signed into law under the Obama administration and allows for the creation of tax advantageous savings accounts. The act allowed states to set up programs that function similar to 529 college savings plans. The Able Act allows parties to set aside money to save for disability related expenses.
What can an ABLE account do for you? The benefits of an ABLE account are mainly tax benefits and means‑tested benefits. For example, up to $100,000 of the ABLE account is excluded from being considered a resource for Supplemental Security Income (SSI). ABLE account balances and distributions are excluded from consideration for Medicaid calculations, with some limitations. The earnings from an ABLE account are tax free. Withdrawals, so long as they relate to qualified disability expenses are tax free. These are just some of the benefits of an ABLE account.
Who can apply for an ABLE account? A person can qualify for an ABLE account if they had a medical disability, physical or mental, which results in marked and severe functional limitations which can result in death or which can be expected to last more than 12 months, or is blind, and which condition appeared before the age of 26.
The Schaumburg attorneys at Kelley, Kelley & Kelley have decades of experience in drafting wills, trusts, special needs trust, powers of attorney and working with families and parents in special needs planning and estate planning. The lawyers at Kelley, Kelley & Kelley work with clients for estate planning and special needs planning throughout Schaumburg, Hoffman Estates, Bartlett, Streamwood, Barrington, Palatine and throughout the great Chicagoland area. Call our office to discuss special needs planning, estate planning and how to potentially utilize the benefits of an ABLE account.