THE MINNESOTABLE Plan, which became a reality in the winter of 2017, is now up and running. Individuals who are living with a disability that began prior to age 26 (“eligible individuals”) may establish and fund an ABLE account. ABLE accounts can be used instead of or in addition to a traditional special needs trust or pooled trust, and may be a perfect vehicle to complement a third party supplemental needs trust.
An ABLE account allows eligible individuals and their loved ones to set aside money — currently, as much as $15,000 annually per beneficiary — up to a total savings of $425,000 ($100,000 if the person is receiving SSI) and pay no taxes on that money’s growth as long as it is used for qualified disability expenses (QDEs). QDEs include any expenses related to the individual’s blindness or disability, including education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, and funeral and burial expenses. If distributions are made for non-qualified expenses, the eligible individual’s eligibility for government programs may be affected.
Our office can help you establish a MINNESOTABLE Plan account and explain how to use it to optimize tax savings and program benefits. To learn more, visit the State’s website at: https://savewithable.com/mn/home/plan-benefits.html.