Individuals with special needs are permitted to set up an Achieving a Better Life Experience, or ABLE account which is tax-free. These accounts are offered in most states, but people can still enroll if their home state does not offer the program Although, when compared to special needs trusts (SNTs) these accounts can have limitations, family members can contribute on behalf of their family member. The two different types of special needs trusts are first party and third party SNT’s. A first-party SNT involves the assets of individual with special needs and upon death state programs received must be repaid, while third-party SNT’s involve a person other than the beneficiary who can maintain their accounts for them and upon death funds are paid to family members.
Read more: Article on ABLE Account Information for Estate Planning Lawyers