ABLE ACCOUNT

What is the PA ABLE Savings Program?

A PA ABLE account gives individuals with qualified disabilities (Eligible Individuals), and their families and friends, a tax-free way to save for disability-related expenses, while maintaining government benefits. Federal and state law authorized the creation of PA ABLE accounts. It allows people with disabilities and their families to have greater control of their finances and to plan for a more financially secure future. PA ABLE savings are not counted against you for any federal needs-based benefits including medical assistance, housing assistance programs, student financial aid, and more. For SSI (Supplemental Security Income), you can save up to $100,000 without affecting your benefits. Above that, your SSI will be suspended but not terminated. However, medical assistance benefits would continue. PA ABLE accounts are PA state tax deductible, within limits. You won’t pay any federal or Pennsylvania income taxes on any growth on your savings while they are in your ABLE account or when you withdraw funds to pay for qualified disability expenses. The total annual contributions by all participating individuals, including family and friends, for a single tax year is $15,000.

What can the money in the ABLE Account be use for? ABLE accounts can pay for expenses that people have because of their disability. Expenses may include:

Education
Food
Housing
Transportation
Employment training and support
Assistive Technology and personal support services
Health, prevention, and wellness
Financial management and administrative expenses
Legal fees
Expense for oversight and monitoring
Funeral and burial expenses
Any other expenses approved by the Secretary of the Treasury under regulations

PA ABLE SAVINGS PROGRAM This downloadable PowerPoint presentation goes into much more detail of how to set it up, who is eligible and what it's used for.

Read how the PA ABLE Law came into effect and which legislators supported it

Read the link of the actual federal law and keep in mind some parts are up to individual states.

https://www.congress.gov/bill/113th-congress/house-bill/647/text

FAQ Benefits: This link also clearly states what happens to the money when the beneficiary dies, it also addresses Medical Assistance (Medicaid) and other legal protections to that money in regards to creditors. http://www.paable.gov/faqs/#benefits

NEW Recently reported by the PA Treasury, PA ABLE contributions are now PA state income tax deductible. Money in a PA ABLE account is free from federal and PA income tax whiled invested (tax deferral). When withdrawals are taken to pay for "qualified disability expenses", no federal tax is owed (tax exemption).

NEW The new tax law enacted on December 22, 2017 allowed families to use 529 money, up to $10,000 per year, to be used for elementary or high school tuition for either public, private, or a religious school. It can also be used towards educational related expenses like books, materials, tutoring and educational therapies for children who are home schooled. Up to $15,000 per year of a 529 account can be rolled into an ABLE account tax free. This provision is likely to help families who established typical college savings plans before learning that their child had a disability, proponents say. Click here to learn more. Before the law, the money would have to be withdrawn then income taxes would be paid and a 10% penalty.

Another change benefits employees who can now contribute up to $12,060 to their ABLE account without it affecting their eligibility for public benefits. However, they cannot be participating in a 401k or a similar plan.

PA ABLE

607 South Drive, Room 529, Harrisburg, PA 17120

Call: 855-529-ABLE (2253)

Email: info@paable.gov

Website: http://www.paable.gov

If you have more questions pertaining to your unique situation, sitting down with a financial professional who is experienced with the disability is a great place to start. Here are some local providers.

Achevia Family Trust

Where:P.O. Box 1077, Havertown, PA 19083
Call: 215-678-0609

Website: http://achievafamilytrust.org/

1847 Financial

Thom Minger

Call: 610-784-3466

Cell: 215-237-3004

Email: tminger@1847financial.com

Website: https://1847financial.com/

The Advocacy Alliance's Representative Payee Program is a system of financial and budgetary management for persons who have a mental illness, persons who have mental retardation, and older adults who are unable to manage their monthly Social Security benefits, other benefits and financial affairs.

Where: 744 North 19th Street, Allentown, PA 18104

Call: (877) 315-6855 or email info@theadvocacyalliance.org

Website: www.theadvocacyalliance.org

The Attainable Savings PlanSM managed by Fidelity FAQ's

Mass Mutual Financial Group Eastern Pennsylvania

Services: The Special Care Program's holistic approach begins with traditional financial strategies

including financial position, protection, investments, tax reduction strategies, retirement planning and estate planning. Their planners specialize in Life Care Planning, Government Program Integration, and Family Dynamics & Financial Resource Management.

Where: 3701 Corporate Parkway, Suite 350, Center Valley, PA 18034

Call: 610-798-2567

Website: www.easternpa.massmutual.com

Sam Yoder

Primerica

About Primerica:

For 40 years we’ve had a simple philosophy: just do what’s right. And that starts every time we sit down with a family – like yours – to educate them about how money works and to offer products and services to help them meet their goals. Primerica helps people learn how to make their money work for them using simple financial concepts. The wealthy have used these principles for decades to achieve success, yet these concepts aren’t taught in schools. Primerica bridges that education gap, empowering the families we serve to make better financial choices and to use the products and services we offer to reach their goals.

Where: 7310 Tilghman Street, Suite 500, Allentown, PA 18106

Call: 610-442-8209

Website: http://www.primerica.com/syoder

Sally Schoffstall

Special Education Attorney

Services: Elder and special needs planning law, guardianship, estate planning, and estate administration

Where: 2987 Corporate Ct #200, Orefield, PA 18069

Call: 610 706 0686

Website: http://www.lvelderlawattorney.com/sally-l.-schoffstall.html

Why create a trust? If you have a loved one with a disability who receives public benefits like Social Security, Medical Assistance, who gains access to money that could disqualify you for your benefits, a personal injury settlement, or an inheritance.

What is a First Party Special Needs Trust?

Is a trust that is funded with assets belonging to a special needs beneficiary and is commonly utilized in situations where the beneficiary is set to receive a settlement or an unexpected inheritance. First party special needs trusts are required to have a Medicaid payback provision.

What is a 3rd Party Special Needs Trust?

It's funded by the beneficiary's family and/or friends, rather than the beneficiary themselves. It can be funded either during their lifetime and/or through an estate plan.

What is a Pool Party Trust?

It's a trust established and administered by a non-profit organization. For self-settled, or (d)(4)(C) pooled trusts, each subaccount is established by the person with a disability, a parent, grandparent, guardian, or a court, and the trust is funded with the assets of the person with a disability.

Pooled Special Needs Trustees

The ARC Community Trust of Pennsylvania (ARC of Delaware and the ARC of Chester County)

Service: This chapter of The Arc operate, or participate in the governance or control of, pooled special needs trusts.
Contact: Juliana Van Dyune-King
Call: 610-265-4788
Email: jvanduyneking@arctrust.org
Website: http://www.arctrust.org

What is a Revocable Living Trust? It's created when a Grantor (the person who creates the trust) transfers assets into a trust during their lifetime and when the trust can be changed or revoked by the Grantor at anytime during his or her lifetime. It lets the living grantor change instructions, remove assets, or terminate the trust. Irrevocable trusts cannot be changed; assets placed inside them cannot be removed by anyone for any reason. Revocable trusts allow beneficiaries to avoid probate court and guardianship or conservatorship proceedings.

How do I Set Up a Special Needs Trust? A family member needs to sign the trust document and then transfer the assets to the Trustee. The trust document is provided by an attorney who provides legal representation and writes all the necessary documents.

How does a trust affect SSI benefits? https://www.ssa.gov/ssi/spotlights/spot-trusts.htm

“The ABCs of Uses of Special Needs Trust Monies” by Dennis C. McAndrews, Esquire gives a comprehensive list of what items the special needs trust can cover.

How to I choose a trustee? It can be an individual or a corporate fiduciary (bank or trust company) who should have knowledge of special needs trust responsibilities. You want to choose someone who cares for your loved one's welfare and will be able to fulfill the responsibilities.

***Some people have a hard time choosing a person to trust with this huge responsibility. That's when a personal care management team can support the trustee to improve or maintain quality of life for loved one. Scroll down to see a list.

In the case of a financial settlement, a corporate fiduciary must be used if the person is a minor. A corporate trustee must follow the document. Read FAQ's about trustees written by McAndrews Law Offices, P.C.. PA UNIFORM TRUST ACT: NEW DUTIES AND OPPORTUNITIES FOR TRUSTEES.

If a family member has doubts, appointing a trust protector makes sure a trustee does their job and in extreme situations can fire or overrule an appointed trustee. Trustees can be sued. Trustees don't always tell resources important matters or speed up the money to improve quality of life.

Learn more about Protecting a Child or Adult with Special Needs

Law for removal of a trustee

https://law.justia.com/codes/pennsylvania/2010/title-20/chapter-77/7766/

What can I use a trust for? "The ABCs of Uses of Special Needs Trust Monies" written by Dennis C. McAndrews, Esquire gives you a comprehensive list.

The Benefits of a Revocable Living Trust vs. a Will. A trust can deal with some things that a will can't. For details, click here.

6 Mistakes to Avoid When Creating a Special Needs Trust

When setting up a trust, you will need an attorney who can guide you through the process. Here is a list of attorneys who are experienced with laws involving the disability community.

Batchis Nestle & Reimann LLC

Leah Batchis
Where: 116 Bala Avenue, Bala Cynwyd, PA 19004
Call: 215-550-1760

Website: http://specialedlawgroup.com/

Facebook: https://www.facebook.com/SpecialEdLawGroup/

Keenan, Ciccitto & Associates

Where: 376 East Main St., Collegeville, PA 19426

Call: (610) 489-6170

Website: https://keenanlaw.com/estate-planning-wills-trusts/

Elizabeth Kapo

Where: 2123 Pinehurst Rd, Bethlehem, Pennsylvania 18018

Call: (610) 758-9800

Facebook: https://www.facebook.com/pages/Kapo-Elizabeth/162882863739473

McAndrews Law Offices, P.C.

Where: 404 North Washington Avenue Suite 310 Scranton, PA 18503

Call: 570-969-1817

Website: http://mcandrewslaw.com/

Murphy & Murphy, P.C.

Angela J. Uliana Murphy

Where: 106 North Franklin Street, Suite 2, PO Box 97, Pen Argyl, PA 18072

Call: 610-863-8502

Website: http://www.murphy2.com/Attorneys/Angela-J-Uliana-murphy.shtml