ABLE accounts and the role of a Care Manager
This past week, I was interviewed as a community expert for research on a new program in our community focused on financial literacy for individuals who are inpatient in longer-term psychiatric care. This program aims to teach financial literacy alongside other essential life skills while individuals are inpatient, supporting their recovery and independence as they reintegrate into the community.
While many of our clients have Special Needs Trusts, these tools are not always the best fit due to factors like the amount of money involved, drafting fees and ongoing administrative costs. As a result, we are seeing more people turn to ABLE accounts as a practical alternative.
At Whitmire, we offer comprehensive support in budgeting and coordinating multiple financial resources, including ABLE accounts, personal wages, Special Needs Trusts, family contributions, and public benefits, all tailored to meet each person’s unique circumstances.
Here’s a breakdown of a care manager’s key responsibilities when working with individuals and their families to support the effective use of ABLE accounts:
1. Education and Guidance
A care manager educates individuals and their family about the purpose of an ABLE account, how it works, and selecting an Authorized Legal Representative (ALR).
2. Assisting with Contributions and Limits
Care managers support individuals stay within the contribution limits set for the ABLE account. They also guide individuals who are eligible for the ABLE-to-Work provision, assisting them in understanding how to contribute beyond the typical $19,000 limit based on their earned income.
3. Identifying Qualified Disability Expenses (QDEs)
Care managers work closely with the account holder and their family to identify appropriate uses for the ABLE account funds, ensuring that withdrawals are used for Qualified Disability Expenses such as healthcare, housing, education, and personal support services. This ensures the funds remain tax-free.
4. Support for the Beneficiary’s Team
A care manager can act as a liaison between family members, fiduciaries, and the beneficiary, ensuring everyone is informed and aligned in managing the ABLE account effectively. They work with individuals or their family directly to develop a budget and/or track spending and make strategic decisions on how to use the ABLE account.
Maximizing Independence and Financial Security
A care manager’s key role with an ABLE account extends far beyond financial oversight—they serve as a guide, advocate, and partner, supporting individuals unlock the full potential of this powerful tool as part of the broader journey toward independence and long-term financial security.
Contact us today to learn how an ABLE account can support you or your loved one on the path to greater self-sufficiency!