Gabriel Borquez Gabriel Borquez

Shared Article: ABLE Programs Prepare for Expanded Eligibility

Article written by Stacy Garrity, Pennsylvania Treasurer

Originally posted here at Social Security Administration website, ABLE Programs Prepare for Expanded Eligibility

December marks the anniversary of the signing of the Achieving a Better Life Experience (ABLE) Act.  Important changes are coming to ABLE programs across the country. These programs are life-changing financial empowerment tools for Americans living with disabilities. ABLE provides a way to save money and build financial independence without affecting eligibility for important benefits, like those administered by Social Security.

ABLE programs allow people with disabilities to save without losing access to important benefits. They come with great tax benefits – like tax-free growth and tax-free withdrawals when used for qualified disability expenses. The range of qualified disability expenses is extensive. It includes everything from day-to-day living expenses like groceries or rent – to bigger expenses like assistive technology and vehicle adaptations.

The first ABLE program opened in 2016. Today, 46 states and Washington, D.C. have ABLE programs. More than 137,000 tax-advantaged ABLE accounts have been opened – and people have saved over $1.25 billion so far to help pay for disability-related expenses.

The ABLE Age Adjustment Act’s proposed amendment was signed into law in December 2022. Starting in 2026, another 6 million Americans (including 1 million veterans) will have access to ABLE programs. Currently, the onset of a person’s disability must be before the age of 26 – but the new law increases that age to 46.

As a veteran, I’m thrilled because 1 million more disabled veterans will have access to ABLE programs. Many of our brave veterans suffer serious, often debilitating, injuries as the direct result of serving our country. These injuries often happen to selfless heroes. Expanding access to ABLE accounts will be a tremendous benefit to my brothers and sisters in the military who sacrificed to protect us all.

While the amendment doesn’t take effect until 2026, now is the time for ABLE administrators and partners to develop outreach strategies. With active and aggressive promotion of ABLE programs, more Americans will know about ABLE and be prepared to start saving in 2026.

Here in Pennsylvania, we have more than 7,500 PA ABLE account owners who have contributed more than $100 million to accounts in just 6 years. This is remarkable and shows the power of these programs.

Expanding outreach won’t just help newly eligible people prepare to save, it’ll help those already eligible, to learn about the great benefits of ABLE accounts.

I encourage anyone who wants to explore saving with ABLE to look into their state’s program. ABLE programs are powerful tools and live up to their name, ensuring a better life experience for our friends and neighbors with disabilities.

Please share this information with friends and family – and post it on social media.

Our posting of this blog does not constitute an endorsement or recommendation of any non-Social Security organization, author, or webpages.

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Gabriel Borquez Gabriel Borquez

Choosing Your Agent

Choosing Your Agent

As we design our estate plans, we often spend time (or should spend time) thinking about who is going to be the person who has the authority to carry out our plan if we are unable to do so. In my next few articles, I will be discussing what types of factors you should be considering for each document that is in a basic estate plan. Today I am discussing the Power of Attorney.

Refresher – What is a Power of Attorney?

As you may remember from my previous articles, the Power of Attorney is a document where you appoint a person as your Agent to handle your financial and business affairs.

What type of authority are we talking about?

The Agent would have the authority to handle decisions and affairs such as writing and endorsing checks from your bank account, speaking with your financial advisors, voting on your corporate share voting rights, moving your investments, selling your residence, etc. Of course, the breadth or narrowness of that authority is up to you since the assets and businesses are yours. These are discussions that you would have with your estate planning attorney prior to drafting the documents. The Agent has this authority only during your lifetime. The authority typically begins at the moment you sign the Power of Attorney, although there are some Power of Attorney documents that create the authority upon your disability or incapacity. No matter the type of Power of Attorney, the authority that the Agent has will end at your death or when you revoke the Power of Attorney.

So, who should be your Agent?

Well, sometimes the answer is crystal clear to clients. For instance, a husband may want his wife to handle his finances since the finances are comingled. Typically, I see clients choose their spouse, child, sibling, parent, or a professional fiduciary to act as Agent. To choose the best Agent for you, it is important to consider some important factors.

Ability to handle finances – Your Agent should be someone that you trust to handle your money and assets. If you do not trust them now, they are likely not a good fit for this responsibility. If your Agent has filed for bankruptcy, has substantial creditors, cannot balance his or her own checkbook, etc., then it may be a good idea to consider someone else who has better experience with handling money and assets.

Trust – You should trust your Agent to do the right thing with your money and assets. Your wealth, no matter the dollar value, should be used for your benefit. Your Agent should be a person that your trust to always use your funds for your benefit.

Location – It is best to have your Agent nearby, although it is not a requirement. With online banking and bill-pay, it has become increasingly easier for an Agent to live elsewhere. However, there are many other responsibilities that an Agent may have which may require the Agent to be close in region.

Family dynamics – Some people choose not to have a family member be the Agent to avoid issues with family dynamics. It is sometimes easier to have a third party act as Agent; someone who is neutral to the family, understands the liability issues of being an Agent, and can have a distant approach during difficult family dynamics.

What is a Professional Fiduciary?

A Professional Fiduciary is a person or institution that handles many client’s personal affairs, the most common being financial affairs. Typically, Professional Fiduciaries are banks, financial institutions, or trained professionals. The Professional Fiduciary gets paid from your assets, either at a percentage of the estate, a regular flat fee, or an hourly rate. Often banks or financial institutions will have a minimum estate value that they will administer, such as $250,000.00 - $1,000,000.00.

It is becoming increasingly common for Professional Fiduciaries to be named in estate planning documents. To find a Professional Fiduciary near you, I recommend speaking with your estate planning attorney or financial institution.

What not to consider

Once of the most common factors that I see clients use in their decision is the child hierarchy. For example, a client will choose their daughter for the sole reason that the daughter is the oldest in age. While this could be beneficial for maturity, it is not a factor that I recommend being a part of the decision as to who should be your Agent.

Take Away

When completing your estate plan, I highly recommend that you put thought into who will act as your Agent. It is a tremendous and honored authority to handle another person’s financial affairs, so it should be done by someone who understands the significance of the role and can handle the role to your rightful expectations.

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Gabriel Borquez Gabriel Borquez

Health Care Instructions and the Advance Directive

“What if I am in an accident and temporarily cannot communicate to others?”

“What if I am very sick and unable to make decisions?”

One of the most important documents a person can have in his or her plan is the Advance Directive. The Advance Directive is a document that allows you to instruct a representative of your choosing and the health care provider with the medical decisions that you would like made if you are unable to communicate your decisions.

Do you want to stay on life support?

Do you have religious beliefs that you want followed for your treatment?

Do you want to avoid tube feeding at all costs?

Now is the time to tell others what your decisions are so that they can be followed. Without and Advance Directive, your loved ones may need to file a Guardianship to make your medical decisions. This requires court fees, attorney fees, a possible court hearing, and time. Additionally, it means the person who becomes your Guardian will be making those choices for you without your guidance.

So, what is the Advance Directive exactly?

The Advance Directive is a form that was drafted by the Oregon legislature. The form includes multiple parts:

1) Appointment of a Health Care Representative and an alternate Representative to make medical decisions on your behalf if you are unable to make the decisions at the time.

2) Instructions to your Health Care Representative.

3) Instruction on how you want your Health Care Representative to make decisions about life support and tube feeding for different specific conditions, such as if you are close to death, permanently unconscious, have an advanced progressive illness, or are suffering extraordinary pain.

The Advance Directive must be signed in front of a notary or two witnesses.


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