Special Needs Trusts

Have you heard of an ABLE account? Many have not, but the New York ABLE legislation was signed into law in December 2015, providing a new savings plan under the New York Achieving a Better Life Experience program in order to give individuals with special needs the ability to maintain savings without jeopardizing their receipt of critical government benefits. Let us take a look at what ABLE accounts have to offer and whether it may be a good option for you or someone you love.

Should You Establish a New York ABLE Account?

In its most basic sense, an ABLE account is a savings account that permits individuals with special needs to maintain savings without risking government benefits such as SSI and Medicaid. Prior to the establishment of ABLE accounts, people with special needs had no reason to save money for their future. Maintaining even the most modest amount of savings would too easily risk the loss of critical government benefits.

Q: How can having a special needs child impact a parent’s estate and retirement planning?

It’s no secret that having a child with special needs often presents parents with financial and other challenges. Unlike other parents whose financial responsibility to their children generally ends in their early 20s once they’ve left the nest, special-needs parents often house and provide financial support throughout adulthood – – sometimes until their own passing.

Therefore, parents must consider their special needs children when doing their retirement and estate planning and should seek advice from a skilled New York and New Jersey estate planning attorney.