Virginia Becomes First State to Approve ABLE Act
Published: Fri, 04/03/15
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Virginia Becomes First State to Approve ABLE Act  Virginia Governor Terry McAuliffe Signs ABLE Act into Law (Source: NBC 29) Q. Our son, Jeff, has autism spectrum disorder and will likely need assistance throughout his lifetime. We are looking for ways to save for his future without jeopardizing his eligibility for Social Security and other government programs. I read about the ABLE act, and how Virginia was recently the first state to approve it. How does it work, and do you think it is a good way to save for our son? A.The Achieving a Better Life Experience Act of 2014 (ABLE Act), which was signed into law in December 2014, allows people with disabilities and their families to set up a special savings account for disability-related expenses. Last month, Virginia became the first state to approve legislation related to the ABLE Act, when Gov. Terry McAuliffe signed a bill (HB 2306) allowing for the new savings vehicle.
Under federal law, the ABLE Act allows people with disabilities to open special accounts, similar to 529 savings accounts, where they can save up to $100,000 without risking eligibility for Social Security and other government programs. However, states (including Virginia) must put regulations in place before financial institutions can begin offering the accounts.
How does the ABLE Act work in Virginia?
In addition to Virginia, the ABLE Act has been enacted in West Virginia and North Dakota, and the Kansas legislature has sent the ABLE Act to their governor. What’s more, legislation is under consideration in 29 other states and draft bills are in the works in another seven, according to Heather Sachs, director of state government affairs for the National Down Syndrome Society.
Medicaid Eligibility
A beneficiary will not lose eligibility for Medicaid based on the assets held in the ABLE account, even during the time that SSI benefits are suspended (as described above for an account with over $100,000). However, under the ABLE Act, when the qualified beneficiary dies (or if he/she is no longer disabled), any remaining assets in the ABLE Account are used to “pay back” any state Medicaid plan up to the value of Medicaid services provided to the beneficiary. The payback is calculated based on amounts paid by Medicaid after the creation of the ABLE Account. This is a MAJOR drawback for most families who want to fund a trust without giving up the right to allow other family members to ultimately benefit from any remaining assets. The National Academy of Elder Law Attorneys is fighting to ensure that the best parts of the ABLE legislation are preserved while proposing amending the Medicaid payback requirement.
Special Needs Planning
It is vitally important for parents to take the right steps to ensure their child will be financially secure and cared for in the event of death or disability of the parent, including:
Special Needs Trust
Unlike an ABLE Account, assets remaining in a properly established Third Party Special Needs Trust are not recoverable by Medicaid at the time of the beneficiary’s death if the trust was funded using the assets of the parent or other third party. This allows the creator to provide for a secondary beneficiary. Therefore, an ABLE account should NOT be used as a substitute for a Third Party Special Needs Trust, but rather only a limited substitute for a First Party Special Needs Trust.
A special needs trust is recommended to protect a disabled individual’s financial future. Also known as Supplemental Needs Trusts, this type of trust preserves legal eligibility for federal and state benefits by keeping assets out of the disabled person’s name while still allowing those assets to be used to benefit the person with special needs. Read more here.
When it comes to special needs planning, The Law Firm of Evan H. Farr, P.C. can guide you through this process. If you have a loved one with special needs, call one of our offices to make an appointment for a no-cost consultation:
Fairfax Elder Law: 703-691-1888Fredericksburg Elder Law: 540-479-1435 Rockville Elder Law: 301-519-8041 DC Elder Law: 202-587-2797 ------ Critter Corner: Apps for those with Autism Spectrum Disorder (ASD)
 Dear Saki and Alley,
My daughter with ASD often gets frustrated when playing on the iPad, because some of the apps are too fast paced, or she doesn't understand them. Do you know of any apps that someone with ASD could enjoy?
Thanks!
Honor Tablett
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Dear Honor,
Saki and Alley no longer live at the office. They have retired from the high-paced world of Elder Law to Evan and Jeannie's quiet house on the water, where they can relax and watch birds all day long. I used to live at their house, but was jealous of the other cats and more of a loner, so I moved to the office, and am thrilled to share my knowledge with you!
Yesterday, in honor of World Autism Awareness Day, Apple launched a new section of its App Store focused on apps designed specifically for autistic individuals.
The thirteen apps listed below range from helping users feel comfortable in their surroundings to a science-based kids' show to help kids navigate the social and emotional world. The apps range in price from free to $120. The collection is under the app store’s education section. To open the collection in iTunes directly, click here.
1. AutisMate 365 – Free
An app that helps develop communication and life skills with visual scene displays, video modeling, schedules and more.
2. Proloquo2Go – $109.99
An “award-winning” symbol-supported communication app.
3. Proloquo4Text – $119.99
A text-to-speech app that features word and sentence prediction.
4. FlummoxVision – Free
This app lets you watch the show “Flummox and Friends” on your iPad. The show is designed to support elementary school children who experience social and emotional struggles.
5. Kid in Story Book Maker – 99 cents
This app uses image detection technology to superimpose a child into the story. It features 12 story templates and the option to create custom stories.
6. PuddingStone – $19.99
“Developed in collaboration with Boston Children’s Hospital, PuddingStone makes language development fun and interactive!” It features three games that target language comprehension.
7. CatterPix Kids – Free
Users can use this app to take a picture of any object and add speech bubbles. They can also use their own voice to make that object talk.
8. Todo Number Matrix – $1.99
This math app features brain teasers, logic puzzles, and reasoning games. Six multi-level games help children practice several skills.
9. Choiceworks – $2.99
This app is meant as a routine management tool.
10. Toca Town – $2.99
Toca Town is place where kids can use their imagination to explore, create and discover. The app boasts no in-app purchases.
11. Toca Box for Autism Awareness – $2.99
The better deal. Get the above app plus Toca Store, Toca Hair Salon and Toca Band, all usually go for $2.99 each.
12. Keeble – $14.99
Keeble is an iOS keyboard that allows users with fine motor-challenges and vision impairment to type in any app.
13. iDress for Weather – $1.99
This helps answer the question: “What should I wear outside today?” iDress is for people at any age and ability, but especially helpful for children and people with disabilities.
Hope your daughter enjoys the apps!
Meows,
Angel
About Angel: Angel joined the firm in 2015 when Saki and Alley retired from the fast-paced world of Elder Law to the domestic tranquility of Evan and Jeannie's home in the suburbs. Angel knows she has some big shoes to fill to replace the popular Siamese brother and sister act, but this stunning young tortoiseshell is up for the challenge. She attended the prestigious Panthera Leo Persica University where she majored in Shedding and Shredding and minored in Feline Hospitality. She enjoys long runs down the hall and cabinet climbing. Her favorite games are conceal-the-paperwork and pet-me-now. Be sure to say hello to Angel next time you're in the office! |
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