What is an ABLE account?

There are many things that could go wrong with your estate after your death in New York. You will not be here to deal with them, so you have to plan ahead and do what you can now to try to prevent anyone contesting your will or making changes that would negatively impact the family members you want to ensure are taken care of. One area where you may be concerned is if you have a disabled child. Ensuring he or she is cared for after you die is likely incredibly important, but a will contest could put that care in jeopardy.

While there are many options for how you can set money aside to try to prevent issues, one new option is an ABLE account. According to the ABLE National Resource Center, an ABLE account is a savings account created under the 2014 Stephen Beck Jr., Achieving a Better Life Experience Act. The account is tax free and the money in it is used only for the person for which the account was set up. Money in the account can be used for expenses related to the beneficiary’s care. This could include housing, medical bills, transportation, training and general care.

You can set up an account for anyone who was disabled before the age of 26. These accounts can be established to provide for your dependent now and ensure he or she is cared for in the future when you are no longer around. This information is only intended to educate and should not be interpreted as legal advice.