When we last talked about ABLE accounts, the Achieving a Better Life Balance Act had just been passed allowing for a disability savings plan which would not result in the loss of Medicaid or SSI benefits. On October 28, 2015, Michigan’s legislature passed ABLE enabling legislation and Michigan’s program is set to open for enrollment on November 1, 2016. For now, the details on the Michigan program are sparse.
Currently there are programs in Tennessee, Nebraska and Ohio and ABLE legislation allows an individual to open an ABLE account in any state.
Chris Smith, in his presentation at the 2nd Annual Elder Law Institute, pointed out, somewhat painfully, that the best program is the one in Ohio. Smith details the features as follows
- No fees for withdraws and deposits.
- A simple enrollment interface.
- The ability of guardians to manage multiple accounts with one login.
- Easy electronic transfers.
- The ability to send a link to friends and family members to help fund the account (similar to gofundme.com).
- A loadable credit card (resembling TrueLink), with a number of built-in controls that nicely balances financial independence with concerns about a beneficiary misusing funds.
Out-of-state residents pay $5/month and 0.45 percent – 0.60 percent of assets.
For a more information on the ABLE Act in general, watch Chris Smith and Art Malisow discussing the details.