Estate planning for individuals with disabilities requires balancing financial security with preserving eligibility for critical benefits such as Medicaid and Supplemental Security Income (SSI). In Florida, ABLE United offers families and individuals a powerful tool to achieve this balance: the Achieving a Better Life Experience (ABLE) Account. Also, see www.ableunited.com.
Since July 1, 2016, Floridians with qualifying disabilities have been able to open tax-advantaged savings accounts that allow them to save and invest without jeopardizing eligibility for needs-based benefits.
Who Qualifies for a Florida ABLE Account?
To open an ABLE account in Florida, you must:
- Be a Florida resident, and
- Have developed a qualifying disability (one that meets the Social Security Administration’s disability standards) before age 26.
Important Update: Beginning January 1, 2026, the age limit increases to 45. This means individuals who became disabled before turning 46 will be eligible.
Even if you are older now, you may still qualify if your disability began before age 26 (or before 46 starting in 2026). For example, a 50-year-old who has been disabled since age 20 is still eligible.
You may also qualify if you:
- Receive SSI or SSDI,
- Have a condition on the SSA Compassionate Allowances List,
- Are blind, or
- Have a medically determinable physical or mental impairment that results in severe functional limitations expected to last at least 12 months or result in death.
Why Open an ABLE Account in Florida?
A Florida ABLE account allows you to:
- Save up to $19,000 annually (2025 limit, tied to the IRS gift-tax exclusion).
- Accumulate up to $100,000 without affecting SSI eligibility. (If only Medicaid is needed, you can save more than $100,000.)
- Keep funds growing tax-free, similar to a 529 college savings plan.
- Directly access your funds for qualified disability-related expenses while maintaining control.
- Avoid Florida Medicaid estate recovery—ABLE United currently does not reclaim funds remaining in an account after the beneficiary’s death.
What Can ABLE Funds Be Used For?
Funds in an ABLE account may be used for a wide range of qualified disability-related expenses, including:
- Medical care and therapies
- Housing and utilities
- Transportation
- Education and job training
- Assistive technology
- Legal fees
- Funeral and burial expenses
Unlike traditional Medicaid planning, an ABLE account gives the beneficiary direct access to money beyond the strict $2,000 asset limit for SSI/Medicaid eligibility.
Using ABLE Accounts Alone or with Special Needs Trusts
While ABLE accounts are an excellent tool, they are not always a complete solution. Sometimes they are used in combination with a Special Needs Trust (SNT), but in other cases, an ABLE account alone may be the better option.
Examples where an ABLE account may be sufficient include:
- Smaller windfalls (e.g., community fundraisers or family gifts) where only modest amounts are being raised.
- Ongoing support from family or friends, since contributions deposited into an ABLE account do not count as income for SSI purposes.
- Supplementing housing expenses, where direct payment by family or friends could otherwise reduce SSI benefits.
For larger sums (e.g., a $500,000 settlement), combining a Special Needs Trust with an ABLE account usually provides greater protection and flexibility.
Looking Ahead: The ABLE Age Adjustment Act
Beginning January 1, 2026, the ABLE Age Adjustment Act will expand eligibility to those whose disability began before age 46. This change is expected to allow millions of additional Americans—and thousands of Floridians—to qualify for ABLE accounts.
Professional Guidance is Key
While ABLE accounts are flexible and affordable (with free enrollment and minimal fees), deciding when and how to use one—alone or with a trust—requires careful planning. Every family’s circumstances are unique.
Experienced counsel, including our firm, can help Florida families in the following ways:
- Determine if a Florida ABLE account is the right tool,
- Coordinate ABLE accounts with Special Needs Trusts and other planning strategies, and
- Ensure long-term eligibility for Medicaid, SSI, and other benefits.
The foregoing is a brief and general overview of the topic and the need for specific and experienced legal and tax advice is emphasized.
Schedule a Consultation
If you or a loved one may benefit from a Florida ABLE account, or if you need guidance on special needs or Medicaid planning, contact CASERTA & SPIRITI in Miami Lakes today. We can help you build a plan that ensures both financial stability and peace of mind.