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by the disabled beneficiary, or by anotherperson in the following order of priority: theindividual%u2019s agent under a power of attorney;the individual%u2019s court-appointed guardian orconservator; spouse; parent; adult sibling;grandparent; or Social Security RepresentativePayee. The account may be opened in the statewhere the beneficiary resides or any other statethat has an ABLE account administration inplace. The beneficiary of an ABLE accountmust have a disability that began before age46. The individual with special needs, oran Authorized Individual for a person wholacks capacity, will have control of the ABLEaccount. Unlike a special needs trust, there isno Trustee.A %u201cthird party%u201d special needs trust isfunded by a parent, spouse or someone otherthan the disabled beneficiary, and can befunded with gifts, life insurance, retirementaccount beneficiary designation (must beproperly done per IRS rules), or bequestsat death through the third party%u2019s will ortrust. A %u201cself-settled%u201d special needs trust maybe funded with the assets of the disabledbeneficiary, from a lawsuit settlement,inheritance, gift or other assets. An ABLEaccount may be funded by either thebeneficiary%u2019s funds or by third parties. The Actallows only one ABLE account for a personwith a disability. Therefore, if divorced parentsor multiple family members wish to establishfunds for such a person, only the first accountwill qualify for the advantages of the Act. Allother accounts will be countable for SSI andMedicaid purposes and will not have the taxadvantages of an ABLE account.There is no limit on the number of specialneeds trusts that can be created for the benefitof the disabled beneficiary, and each suchtrust may have different trustees and holddifferent types of assets. The ABLE Act limitsthe amount that can be contributed annuallyto the account to $19,000 from all sources.An ABLE beneficiary who earns income fromemployment may contribute the lesser of (a)their earned income or (b) the Federal PovertyLevel amount for one person ($15,650 in2025) in addition to the annual contributionlimit.Withdrawals may be taken tax-free froman ABLE account for %u201cqualified disabilityexpenses%u201d which section 529A(e)(5) defines asfollows: %u201ceducation, housing, transportation,employment training and support, assistivetechnology and personal support services,health, prevention and wellness, financialmanagement and administrative services,legal fees, expenses for oversight andmonitoring, funeral and burial expenses%u201dComplimentary caseconsultations.FINANCIAL SERVICES FORALL STAGES OF DIVORCE:Let us makeyour life easier...With 25 years in financialplanning, I'm one of only ahandful of professionals in thecountry holding the CFP%u00ae, theCertified Divorce FinancialAnalyst%u00ae, and the new TaxPlanning CertifiedProfessional%u00ae designations. Ibring this expertise andpersonal divorce experience tohelp your clients whilereducing your workload.Assistance with8.05 completionExpense & CashFlow AnalysisComplex Tax Planning& Scenario ModelingSettlement Review& Projections(601) 345-1815www.newpathplanning.com4266 I-55 N, Ste 108Jackson, MS 39211KRISTI TIDWELL,CFP%u00ae, CDFA%u00ae, TPCP%u00aeand others approved by IRS regulations.%u201dA %u201cthird party%u201d special needs trust can oftenpay for entertainment, recreation, clothing,furnishings and many types of services thatare not listed as qualified disability expensesfrom an ABLE account. Disbursements froma %u201cself-settled%u201d special needs trust may be morelimited by the policies of SSI and Medicaid.Situation: Planning for a formerlyemployed person with a disability.An adult who has paid Social Securitytaxes on a sufficient period of employmentmay become disabled and unable to work.The Social Security Disability Income (SSDI)program is designed to pay a monthly incometo persons who are not yet retired and eligiblefor Social Security Retirement, but whohave worked and paid into the system andhave become %u201cdisabled%u201d as defined in 42U.S.C. %u00a7 1382c(a)(3). A person is disabled%u201cif he is unable to engage in any substantialgainful activity by reason of any medicallydeterminable physical or mental impairmentwhich can be expected to result in deathor which has lasted or can be expected tolast for a continuous period of not less thantwelve months. . . an individual shall bedetermined to be under a disability onlyif his physical or mental impairment orimpairments are of such severity that he isnot only unable to do his previous work butcannot, considering his age, education, andwork experience, engage in any other kind ofWINTER 2026 17