On December 19, 2014, the Federal government passed the Achieving a Better Life Experience Act (ABLE Act of 2014) to approve the use of tax-free savings accounts, similar to 529 plans, for individuals with disabilities to cover expenses not covered by government sponsored programs. The ABLE Act allows for those with disabilities to have a supplemental source of income beyond those provided by governmental programs, such as Medicaid or Social Security by allowing individuals to utilize a tax-free, state-based private savings account for expenses such as medical and dental care, education, employment training, housing and transportation.
However, NC must establish regulations before it can begin to set up procedures for managing ABLE accounts. Use of ABLE accounts along with special needs trusts will become one of many options available when planning for persons with disabilities.
Attorneys Andrew Olsen and Lisa Salines-Mondello are available for consultation regarding special needs trusts and other life care planning issues. Attorney Aileen Viorel is available for consultation regarding special education law.