1. Who Can Open and Manage an ABLE Account?

2. What is ABLE?
Tax-free savings option for individuals with eligible disabilities
Disability must have appeared prior to age 26
Won’t affect eligibility for means-tested government benefits
Can be funded with resources belonging to account holder or others

3. Capacity
Beneficiary assumed capable to open/manage account unless guardianship proceedings determine otherwise
Even if beneficiary has capacity, it’s advisable to sign power of attorney immediately
Doctor’s letter may be advisable to avoid question of POA validity
If health deteriorates, guardianship may also be a consideration

4. Others Who Can Open and Manage Account
If account holder lacks capacity or wishes assistance, only authorized parties are:
Agent under power of attorney
Parent
Legal guardian
May not profit from the account during beneficiary’s lifetime
Must administer it for account holder’s benefit

5. Parents with signature authority may want to consider establishing conservatorship or guardianship
Should name a successor to manage in event of their own incapacity or death

6. Minors as Beneficiaries
Account must be created and managed by parents or conservator/guardian
Automatically considered competent adult at 18 or 21, depending on state—regardless of severity of disability
If capacity in question, families should consider establishing power of attorney or guardianship

7. Comparison with SNTs First party SNT
No cutoff age for appearance of disability
Beneficiary must by under 65
Can only hold beneficiary’s assets
Must be managed by trustee, who has sole discretion regarding distributions

8. Comparison with SNTs Third Party SNT No age restriction
Must be funded with resources belong to someone other than the beneficiary

9. Linking ABLE Account to SNT
ABLE accounts can be empowering, but if there are questions concerning capacity, care should be taken to avoid abuse or mismanagement
One strategy: ABLE/SNT link
SNT trustee can transfer small amounts to ABLE account
As beneficiary gains management skills, amounts can be increased