ABLE


Understanding ABLE Accounts in Real Estate: A Game-Changer for Individuals with Disabilities

The ABLE (Achieving a Better Life Experience) Act, passed in 2014, introduced ABLE accounts, tax-advantaged savings accounts for individuals with disabilities and their families. These accounts were created to address the financial challenges faced by individuals with disabilities and their families, allowing them to save and invest funds without affecting their eligibility for public benefits like Medicaid, SSI, and SNAP. Let's delve into the details of ABLE accounts and their relevance in the realm of real estate.

What is an ABLE Account?

An ABLE account is a tax-advantaged savings account designed to help individuals with disabilities and their families save for qualified disability expenses. The beneficiary of the account is the account owner, and income earned in the account is not taxed. Contributions to the account are made using post-taxed dollars and are not tax deductible for federal taxes, although some states may allow for state income tax deductions for contributions to an ABLE account [1].

Impact on Real Estate

Addressing Financial Hardship

Individuals with disabilities and their families often face financial challenges related to housing. ABLE accounts provide a means to save for expenses related to accessible housing, transportation, and other housing-related costs without impacting eligibility for public benefits [1].

Property Ownership and Accessibility

For individuals with disabilities, an ABLE account can be a valuable tool for saving towards homeownership, accessibility modifications, and other housing-related needs, without jeopardizing their eligibility for vital public benefits [2].

Benefits and Eligibility

Benefits and Eligibility

Eligibility

To be eligible for an ABLE account, an individual must have incurred a qualifying blindness or disability before turning 26 years of age. However, with the ABLE Age Adjustment Act passed in 2026, the age of disability onset will be increased to 46 years, expanding the number of eligible individuals [2].

Qualified Disability Expenses

The funds saved in an ABLE account can be used for a wide range of qualified disability expenses related to housing, transportation, health care, and more, providing individuals with disabilities and their families the means to address crucial real estate-related needs [2].

Considerations for Real Estate Planning

Property Accessibility and Modifications

ABLE accounts offer individuals with disabilities the opportunity to save for accessibility modifications and other property-related expenses, addressing the unique real estate needs of this demographic [2].

Investment Opportunities

States offer various investment options for ABLE accounts, providing individuals and families the opportunity to grow their savings to address potential real estate needs in the future [1].

Conclusion

The introduction of ABLE accounts has significantly impacted the real estate landscape for individuals with disabilities and their families. These accounts provide a means to save for housing-related needs, property accessibility, and other real estate expenses, while preserving eligibility for essential public benefits. As the age of eligibility for ABLE accounts expands, the impact on the real estate sector is expected to be even more profound, offering individuals with disabilities greater financial flexibility and independence in navigating their real estate-related needs.

As the real estate industry continues to evolve, the role of ABLE accounts in addressing the housing and property-related needs of individuals with disabilities cannot be overstated. By empowering this demographic to save and invest for their real estate requirements, ABLE accounts are driving positive change and fostering greater inclusivity within the real estate landscape.

By staying informed about the benefits and considerations of ABLE accounts, individuals with disabilities, their families, and real estate professionals can better navigate the unique financial aspects of real estate planning within this demographic.

[1] Source:

ABLE National Resource Center

[2] Source:

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