Hot off the presses, the State of New Jersey has just released its Med-Com concerning the treatment of ABLE accounts by the New Jersey Medicaid programs. Here it is – Med-Com 19-09 ABLE Act
Up to $305,000 that is held in an ABLE account will be excluded from consideration as a “resource” for purposes of NJ Medicaid programs (the limits is $100,000 for SSI). The accounts can only be funded by deposits of up to the federal gift tax exclusion per year ($15,000 in 2019), plus certain limited contributions of income, unlike a Special Needs trust which can be funded with unlimited amounts of assets by a disabled individual under age 65. In previous posts I have discussed the uses of ABLE accounts as a distinct form of asset preservation and flexibility in expenditures for Qualified Disability Expenses, for individuals who became disabled before age 26. The Med-Com provides examples of qualified disability expenses, and expenses that could cause problems.
For advice about asset protection planning in connection with aging and disability, call us at ………. 732-382-6070