Disabled Georgians have a new program to assist in their goal of financial independence. As of June 14, 2017, Georgia is the 22nd State to launch an Achieving a Better Life Enrichment (“ABLE”) program, labeled STABLE, to assist disabled individuals in saving private funds without disqualifying them from much needed benefits.
Who qualifies for a STABLE account?
To qualify an individual must have become disabled before the age of 26 and must be receiving benefits under Social Security Disability (SSDI) or Social Security Income (SSI).
How does it work?
A disabled individual may only have one STABLE account and may contribute up to $15,000 a year to such an account without jeopardizing eligibility for SSI, SSDI, or Medicaid. The funds can be used to pay for an individual’s education, employment training and support, housing, health care expenses, transportation, personal support services, legal fees, financial management fees, and funeral expenses.
STABLE accounts also have a lifetime account limit of $235,000 at which point no more contributions may be made, and, any individual whose account exceeds $100,000 will be suspended from SSI, but not Medicaid. Upon the death of the individual, Medicaid will seek reimbursement of expenses from any remaining funds in the account. Any income the account earns is not taxed as long as the money is used for qualified expenses. There is a yearly maintenance fee of $42, or $3.50 a month, and there must be a minimum of $50 in an account for initial funding.
Do I still need a Special Needs Trust?
While individuals may now have more than $2,000 in assets without disqualifying themselves from benefits, a STABLE account paired with a well planned Special Needs Trust can assure that a family member has the flexibility of income with the sustainability of a lifetime plan.
Why is this important?
The STABLE accounts have debit cards which allow individuals who are employed, and/or who have some level of financial independence to have an independent account they can put money into and easily access money from while still receiving benefits. The STABLE account with a third party Special Needs Trust assures better long-term care, more abundant resources, and oversight. STABLE accounts have more flexibility than third party special needs trusts and can be funded by the disabled individual themselves, but will be subject to Medicaid reimbursement. A third party special needs trust still assures longevity, stability, and money for the next generation.
We work with individuals and families to understand their needs and provide estate plans that address them. Contact Grissom Law, LLC today at 678-781-9230 to schedule an appointment to discuss your needs.
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