In my will, I have had a lawyer craft a special needs trust in case I predecease my disabled relative. Over the course of many years, there have been regular withdrawals from his checking account to keep it below the allowable $2000. These monies were given back to him for household expenses. Can the cumulative amount over the 5 year lookback be protected from being considered gifts and therefore subject to a penalty?
If so, not of much use for elderly with dementia but great for those with a childhood or young adult onset disease or bad auto or sports accidents which leave them disabled.
ABLE will be especially good for those who currently have to deal with a special needs trust but would rather have the beneficiary self directing rather then having to go through trustees. I'm a cotrustee on a cousin who had polio in the 1950's SNT set up by his parents, so ABLE for him will be good as he can immediately shift 15K to the ABLE & he can use the $ directly. Less for the trust to do & we can probably move up the defund of the SNT.
Do you know if ABLE limits the # of accounts that can be opened?