New Jersey Estate Attorney Christine Matus Explains ABLEAccounts
May 04, 2022 at 16:27
New Jersey estate attorney Christine Matus releases a new article (https://matuslaw.com/what-are-ableaccounts-in-new-jersey/) explaining ABLEAccount in the state of New Jersey. The lawyer mentions that special needs individuals and their families are often faced with significant financial challenges. Before, there are many restrictions on the income and assets of a special needs family member in order for them to qualify for government benefits.
“ABLEaccounts are savings accounts designed to assist special families to save private funds to maintain the health, independence, and quality of life of their loved ones while still maintaining eligibility for their critical government assistance. For those who have been diagnosed with a disability before the age of 26, funds saved in an ABLEaccount, up to a certain threshold and spent properly, will not affect their eligibility for public benefits for the special needs individual,” says the New Jersey estate attorney.
The lawyer explains that funds in an ABLEaccount are not regarded when determining eligibility for many government benefits, including SSI, Medicaid, section 8 housing, food stamps, DDD, or other benefits. Deposits into the account and payments from the account allow the special needs individual independence while maintaining their benefits. In addition, any income earned on funds in the account is tax-deferred.
Attorney Christine Matus adds that there are two specific requirements for an individual to be considered eligible to open and maintain an ABLEaccount in New Jersey. First, the person must be diagnosed with a disability by a competent healthcare provider before their 26th birthday. They must also be diagnosed with a disability that has functional limitations which are expected to last for a year or more.
In the article, attorney Matus adds that any distribution from an ABLEaccount must be considered qualified disability expenses as defined by the Social Security Administration. This means that any distribution from the account must be used to maintain or improve the individual’s health, independence, and quality of life.
According to the estate attorney, “Anyone can make contributions to the ABLEaccount on the owner’s behalf. Family members and even friends can donate funds to an individual’s ABLEaccount. But there are limitations to the annual amount that can be deposited into the account on the beneficiary's behalf as well as limitations on the total value of the account without affecting SSI and Medicaid eligibility.”
Lastly, attorney Christine Matus encourages families to seek the help of an experienced estate lawyer. Having a skilled estate lawyer may be able to help protect the estate and wealth the client has worked so hard for. It may also be able to protect the future of the client’s children.
About The Matus Law Group
The Matus Law Group has a team of estate attorneys who are committed to helping families and individuals in real estate transactions in New Jersey and New York. Through a team approach, they work hard to help their clients with their estate planning needs. Call The Matus Law Group today at (732) 785-4453.
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Matus Law Group - Monmouth County
125 Half Mile Rd Red Bank, NJ 07701