Pessin Katz Law P.A. has made available their thoughts on ABLE (Achieving a Better Life Experience) accounts in Maryland, which provides benefits for the parents of special needs children.

The article beings as follows:

PK Law previously reported on the advent of ABLE (“Achieving a Better Life Experience”) accounts (the “Accounts”). By enacting a change to the Internal Revenue Code (“IRC”), new Sec. 529A, Congress permitted distributions from the Accounts, created under that Section of the Code, to be made tax free when made, essentially, for the wellness of special needs children. The Accounts are to be administered under individual state auspices.

While not a replacement for a Special Needs Trust and estate planning for a family with a special needs child, the Accounts provide some real benefits to parents of special needs children including accumulations tax free so long as they are used for “qualified disability expenses” and exemption from the $2,000 limit on personal assets in qualifying for Supplemental Security Income and other public benefits. Restrictions include a limit on the balance of such Accounts; limitation on eligibility by way of a required diagnosis of disability of the Account’s beneficiary prior to age 26; and a potential capture of an Account’s assets at the beneficiary’s death.

Find the full article here: Update on ABLE Accounts in Maryland – JD Supra

Posted by Pooja Shivaprasad, Associate Editor, Wealth Strategies Journal