ProtectS ASSETS FROM MEDICAID “CLAW BACK”
This week, the Illinois ABLE Asset Protection Act became law after Governor J.B. Pritzker signed the legislation championed by Illinois Treasurer Michael Frerichs. The legislation helps ensure that IL ABLE aligns with the spirit of the Achieving a Better Life Experience (“ABLE”) Act of 2014: to improve quality of life, increase independence, and improve self-reliance of the individual with a disability through a secure way to save for the additional expenses that come with having a disability.
The first law of its kind to be passed in the country, the Illinois ABLE Asset Protection Act is intended to allow assets in an IL ABLE account, after funeral and burial expenses are paid, to be transferred to another ABLE-eligible individual without being distributed to a probate estate pursuant to a payable on death agreement. In these instances, in Illinois, the IL ABLE assets should avoid probate costs, probate creditors and Medicaid recovery, sometimes referred to as “claw back,” upon the death of the Account Owner.
Prior to the Illinois ABLE Asset Protection Act, some individuals and families were concerned that an IL ABLE account would be subject to numerous probate issues, as well as “claw back.” This concern may have outweighed the considerable benefits of owning an IL ABLE tax-advantaged savings and investment account for the benefit of and use by the Account Owner.
IL ABLE accounts allow the Account Owner to save while preserving Medicaid benefits. With an IL ABLE Account, the Account Owner can deposit paychecks, receive gifts or donations from friends and family, and use the money to help pay for the additional expenses that come with living with a disability, many of which are not covered by Medicaid benefits. IL ABLE accounts supplement, but do not replace, federal means-tested benefits.
For more information about the benefits of IL ABLE Accounts please visit the links below.
Find quick answers to your ABLE questions visit IL ABLE FAQs.
Individuals interested in IL ABLE should visit IL ABLE at illinoisable.com.
This Athlete and Global Messenger is Building Physical & Financial Wellness On and Off the Field
When 21-year-old Special Olympics Illinois (SOILL) Global Messenger Michael Williams collaborated on an Autism Awareness Month video, he was filling pandemic time to build communications skills while waiting to return to in-person SOILL competition. “Michael is not as interested in the virtual activities, so he is looking forward to entering more Special Olympics events in-person,” said Dawn Williams, Michael’s mom, and coach of several of Michael’s teams.
Read More “Special Olympics Illinois & IL ABLE partner to help families”
Ugift® is an easy-to-use, no-cost way to make a meaningful holiday gift to a loved one with a disability. How does it work?
First, the IL ABLE Account Owner (person with the disability) or the Authorized Individual (an adult who is authorized to transact on the account) logs into their IL ABLE account and accesses their unique Ugift® code.
Next, they share that code with friends, family or others who want to make a contribution to the account.
Then, the gift giver visits UgiftABLE.com and inputs the code in order to make a direct contribution to the IL ABLE Account Owner’s account.
Read More “Give the gift of savings to an IL ABLE Account Owner with Ugift® this holiday season”
We have the date – November 10, 2020.
We have the time – 6:30 pm – 8:00pm CT
We have the place – online webinar via Webex.
NOW WE JUST NEED YOUR TOPIC!
Read More “What ABLE Topics Do You Want to learn more about?”
Consider Rolling it Over to IL ABLE. Here’s Why.
If you live in Illinois and opened an ABLE account for yourself or a loved one in another state’s ABLE plan, you may be missing out on some of the benefits offered by IL ABLE. For example, if you are an Illinois taxpayer and you contribute to any IL ABLE account, you may be able to take a state income tax deduction. Learn more here.
Read More “Do You Own an ABLE Account in Another State?”
Tips on the “What and Where” of IL ABLE Accounts
Opening an Illinois ABLE account is an easy process. Accounts can be opened online, or you can download, print and mail a completed application.
Read More “Five Things to Know When Opening an IL ABLE Account”
Easy Ways to Make Holiday and Year-End Contributions to a Loved One’s Illinois ABLE Account
It happens every year. As we enter the holiday season, many family and friends of loved ones with disabilities want to give them money to use to enjoy life or help with expenses. However, for years, family and friends have been told not to give their loved ones with disabilities money because it will put the loved one’s benefits at risk.
Read More “Season’s Giving”
True or False? Because of the Medicaid Clawback, you shouldn’t open an ABLE account. False!
Read More “Back to School on Medicaid “Clawback””
New Flexibility Is Here to Open an IL ABLE Account
Are you a Guardian of an adult with a disability? Have you tried to open an Illinois ABLE account as an Authorized Individual for the adult, but didn’t have the right Guardianship documents to complete the enrollment?
Read More “Guardians of Adults and Illinois ABLE Accounts”
The information you need about the Illinois ABLE Plan is at your fingertips
Read More “Check out these easy ways to learn about Illinois ABLE”