Carolyn A. Hegge
Wisconsin residents may soon have a tax-advantaged way to save for the expenses of disabled family members. A new federal law allows states to create “Achieving a Better Life Experience” (ABLE) accounts, which are tax-free accounts that can be used to save for disability-related expenses. ABLE accounts are similar to Section 529 Educational Savings Accounts (i.e., Edvest accounts). On May 17, 2015, Rep. John Macco and Sen. Howard Marlein introduced the Achieving a Better Life Experience bill (AB236 and SB165) in the Wisconsin legislature which, if passed, will enable the creation of ABLE accounts in Wisconsin.
Here are some of the key features of ABLE accounts:
After the enabling legislation is passed, there will still be a lot of details to work out regarding the creation and impact of ABLE accounts in Wisconsin. However, once ABLE accounts are available in Wisconsin, they will provide Wisconsin families with a good alternative to special needs trusts.
If you have any questions about how the information in this article may affect you or your family, please contact Carolyn A. Hegge at chegge@stroudlaw.com or (608) 257-2281 or your Stroud attorney.
DISCLAIMER: The information in this article is provided for general informational purposes only, is not necessarily updated to account for changes in the law, and should not be considered tax or legal advice. This article is not intended to create, nor does the receipt of it constitute, an attorney-client relationship. You should consult with your own legal and/or financial advisors for legal and tax advice tailored to your specific circumstances.