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Thingsto know about Stable Accounts

The Daily Record - 10/15/2017

Stable Accounts are being talked about and confusion is reigning. Stable accounts have nothing to do with horses or housing livestock. They are a type of account that allows parents, guardians, individuals with Power of Attorney (POA) and in some cases the person with disabilities to prepare for the future without affecting benefits.

Many parents worry about the care of their child after they die. Will there be enough money to help supplement the SSI that their child receives? Up until now any money left to the child may well affect their benefits and result in hardship. The Stable Account can relieve that fear.

To be eligible for a Stable Account an individual must be blind or have a disability that manifests itself before their 26th birthday. Eligibility is tied to the Social Security Administration (SSA) disability test. The individual must be unable to engage in “substantial gainful activity” due to physical or mental impairment.

Unlike most government programs, Stable Accounts are partially run on the honor system. The Internal Revenue Service (IRS) allows an individual to open an account by swearing, under penalty of perjury, that the individual benefitting (the beneficiary) of the account meets the eligibility requirements. However, they must be able to produce a physician's statement if asked. The beneficiary, parent, guardian or POA can open an account by going online to www.stableaccount.com.

Any person (including the beneficiary) or entity (parental trust, benefit proceeds, etc.) can contribute to the account. The total annual contributions cannot be more than $14,000 and the maximum in the account cannot exceed $414,000. Excess contributions are either returned or penalized.

Stable Accounts are designed to not affect or interfere with other benefits. SSI benefits are only affected if the account exceeds $100,000. Medicaid is uninterrupted even if the balance exceeds $100,000, but is subject to Medicaid payback.

Stable Accounts are an option when there is a need to disperse excess income. It is also a way to protect small inheritances, small legal settlements and accumulated assets.

Stable Accounts can be used for a variety of uses. Among them are basic living expenses, housing, transportation, education, assistive technology, employment training, personal support services, legal fees, health and wellness, and financial management.

Basic living expenses would be food, clothing, utility bills and related expenses. Housing could be rent that includes utilities or without utilities. Transportation includes wheelchairs (including motorized), bus fares, taxi fares and, in some cases, bicycles and even some motorized vehicles.

Education would include instruction that will help the individual become more independent. Assistive technology would include any devices used for education or daily living that assists the individual to more easily integrate into society or a ramp or stair adapter.

Legal fees could be for any legal services needed by the individual. This could include the hiring of an attorney should there be a conflict regarding guardianship or restriction of rights.

Health and wellness would cover any medical costs not covered by insurance. It could also include equipment in the home to enhance the well-being of the person.

Financial management services may be needed if the individual has difficulty with money management or lacks the knowledge needed to maintain their own finances. This is not needed if there is a guardian of the estate (controller of the assets of a Ward).

Personal support services would include the services of an aide. The aide could be just a couple of hours a week to do laundry and shopping or 24 hours a day for personal care.

Mrs. Theil is a child advocate in Wayne and Holmes counties. She can be contacted at BeverlyVT@aol.com.

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