New Jersey estate planning attorney Christine Matus (https://matuslaw.com/what-are-able-accounts-in-new-jersey/) of The Matus Law Group sheds light on the value of ABLE accounts, a crucial financial tool designed to empower individuals with disabilities and their families. Christine Matus emphasizes the pivotal role these accounts play in safeguarding eligibility for essential government benefits while promoting financial independence.
ABLE accounts, established under the Stephen Beck, Jr. Achieving a Better Life Experience (ABLE) Act of 2014, have transformed financial planning for special needs individuals. Christine Matus explains that these accounts allow individuals diagnosed with disabilities before age 26 to save money for various expenses without jeopardizing benefits such as SSI or Medicaid. “These accounts are a lifeline for families,” the New Jersey estate planning attorney notes. “They allow for essential financial stability while maintaining access to critical government programs.”
For those handling the complex matter of special needs planning, engaging a New Jersey estate planning attorney can be invaluable. Christine Matus highlights that funds deposited in ABLE accounts are not considered when determining eligibility for public assistance. This means families can maintain their loved ones’ health and independence without sacrificing vital support systems.
ABLE accounts provide a unique advantage: the income earned within these accounts is tax-deferred, offering a financial incentive for long-term savings. “This feature can significantly alleviate the financial strain on families while supporting the quality of life for individuals with special needs,” adds Matus.
Opening an ABLE account in New Jersey is straightforward but requires careful adherence to eligibility criteria. The individual must have been diagnosed with a disability before their 26th birthday and meet specific functional or government disability standards. “For families unsure of how to proceed, consulting with an estate planning attorney can clarify the requirements and streamline the process,” says Matus.
Christine Matus outlines the steps for setting up an ABLE account. Eligible individuals, or their authorized representatives, need to complete an enrollment form, which can be submitted online or via mail. Additional documentation, such as a doctor’s diagnosis or Social Security verification, may be required to confirm eligibility. An initial contribution of at least $25 is necessary to open the account.
Expenses covered by ABLE accounts must align with the definition of qualified disability expenses as outlined by the Social Security Administration. These include housing, health care, education, transportation, and personal support services. “Families should be mindful of the rules,” warns Matus, “since non-qualified expenses can result in tax penalties and impact eligibility for benefits.”
While the benefits of ABLE accounts are substantial, there are limitations. Contributions are capped annually, and the total account value can affect benefits if it exceeds certain thresholds. Additionally, upon the account holder’s death, remaining funds may be used to reimburse the state for Medicaid payments unless transferred to another family member with a disability.
Christine Matus underscores the importance of working with a knowledgeable estate planning attorney to manage these nuances. “ABLE accounts are a powerful tool, but understanding their intricate aspects is essential for maximizing their benefits,” Matus advises.
ABLE accounts represent a significant step forward for families striving to balance financial security with the ongoing needs of individuals with disabilities. At The Matus Law Group, Christine Matus continues to provide guidance to families seeking to utilize ABLE accounts as part of their broader estate planning efforts.
Families considering opening an ABLE account should consult with an experienced attorney to help ensure they meet eligibility requirements and make informed decisions. Christine Matus and The Matus Law Group can offer comprehensive support to families handling this process.
About The Matus Law Group:
The Matus Law Group is a dedicated law firm based in New Jersey, well-versed in estate planning and legal solutions tailored to the needs of individuals and families. Led by Christine Matus, the firm is committed to empowering clients with knowledge and tools to protect their financial futures, including those supporting loved ones with special needs.
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