Guest guest Posted November 22, 2011 Report Share Posted November 22, 2011 Among the many issues with ABLE (H 3423 & S 1872) are: (1) ABLE is much more limited on how you can spend the money than a traditional 1st party or 3rd party special needs trust (example, no vacations under ABLE); (2) reporting requirements to the federal government unlike a 3rd party special needs trust, and if no guardianship and not a minor, much more reporting requirements than a 1st party special needs trust; (3) a pay back (reimbursement) to the State when the beneficiary dies, for all that the State(s) paid, unlike a 3rd party special needs trust where the remainder stays with the family; (4) if there is a guardianship, then court approval is required to establish the ABLE Account in Illinois, and in many counties (all collar counties), court approval for expenditures and required notice to the State of all expenditures, subject to State challenge, and possibly have to post a surety bond; (5) If ABLE Accounts for beneficiary, in total, exceed $100,000, then the beneficiary will lose SSI, and in the way it is currently worded, in some states, such as Illinois, where Medicaid is not automatically tied to SSI (in most states it is, but NOT Illinois), loss of Medicaid, including Waiver programs; (6) you can't move custodial accounts (UTMAs) to an ABLE Account if there is a Guardianship or the beneficiary is a minor, without court approval. I could go on, but these are just some of the issues. When does it make sense? For small litigation settlements and/or when the beneficiary is putting their own money in and no one cares that the other children or the beneficiary's children will not see anything, get anything when the beneficiary dies. It also would be beneficial if the beneficiary is on SSDI and Medicare and not on SSI or Medicaid. The real benefit is income tax free growth, but investing in federal income tax free municipal bonds or municipal bond funds, or equities producing little income where you only will be subject to capital gain rates, maybe a better option. Also remember that Pooled Trusts, like Life's Plan and the Illinois Disability Association are also alternatives that should be considered without the problems outlined above. Rubin<mailto:brian@...>* [cid:image002.jpg@...]<http://www.rubinlawcorp.com/> * President, The Arc of Illinois 2011-2013 * Member by invitation of the Special Needs Alliance (web site<http://www.specialneedsalliance.org/>). The SNA is the national non-profit association of experienced " Special Needs Planning " Attorneys. Rubin is a member of SNA's Board of Directors. * Member of the Special Needs Law Steering Committee of NAELA,<http://www.naela.org/>the National Academy of Elder Law Attorneys. <http://www.naela.org/> * Was a Charter Member of the Academy of Special Needs Planners * Has been awarded the dale Hubbell Peer Review<http://martindale.com/> Rating of AV Preeminent, the highest rating given<http://martindale.com/>. * For more information about Rubin, please visit our web site<http://www.rubinlawcorp.com/>. Notices: 1. This message does not create an attorney-client relationship, and is not legal advice absent such a relationship with the recipient. 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The Signature given hereon is not an electronic signature and is provided only for the purposes of providing information as to the identity of the sender and for no other purpose(s) whatsoever. From: IPADDUnite [mailto:IPADDUnite ] On Behalf Of Cindi Swanson Sent: Tuesday, November 22, 2011 8:44 AM IPADDUnite Subject: able act I am not sure where there would be a negative on this. If the able act protects our children what would be the downside on this. Dear Friends, The December NDSS webinar will be " ABLE Act 101 - Everything You Need to Know About the ABLE Act " on December 7th at 1pm Eastern. The Achieving a Better Life Experience (ABLE) Act of 2011 (S. 1872/H.R. 3423) was just introduced in the 112th Congress in both the U.S. Senate and House of Representatives. When passed as a law, the ABLE Act will give individuals with disabilities and their families the ability to save for their child's future just like every other American family, and help people with disabilities live full, productive lives in their communities without losing benefits provided through private insurances, the Medicaid program, the supplemental security income program, the beneficiary's employment, and other sources. The account could fund a variety of essential expenses for individuals, including medical and dental care, education, community based supports, employment training, assistive technology, housing, and transportation. During this webinar, you will learn the nuts and bolts about the ABLE Act and how you can take action to get the ABLE Act passed into law Presenters: * Ariale, Chief of Staff, Representative Ander Crenshaw (R-Florida) * Debes, Legislative Assistant, Representative Ander Crenshaw (R-Florida) * Steve Beck, Parent; Board Member, National Down Syndrome Society; Board Member, Down Syndrome Association of Northern Virginia * Madeleine Will, Director, National Down Syndrome Society * Sara Weir, Senior Policy Advisory, National Down Syndrome Society Slides from the presentation will be posted to www.ndss.org.During<http://www.ndss.org.During> the webinar there will be time for Q and A. Please feel free to share this webinar and the login information with anyone you feel may be interested in the presentation. Please register to attend this webinar. Seats are limited: https://www2.gotomeeting.com/register/608740234 Warmly, NDSS National Down Syndrome Society666 Broadway, Suite 810 New York, NY 10012 800-221-4602 www.ndss.org<http://www.ndss.org> Quote Link to comment Share on other sites More sharing options...
Guest guest Posted November 23, 2011 Report Share Posted November 23, 2011 Thank you, . Good and important information on ABLE ACT. Ellen Ellen Garber Bronfeld egskb@... Quote Link to comment Share on other sites More sharing options...
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