2016 IRS Reporting Deadlines

2015 Forms 1040 will be due on April 18, 2016. 
You get an extra weekend to file your tax returns 
in 2016 thanks to an uncommon mix of holidays 
and weekends. 

Click  here for a list of tax deadlines occurring in calendar year 2016 (for tax year 2015 returns).

The  ABLE Act:
Recent Developments

Planning for children is one of the main reasons individuals seek our assistance as estate planning attorneys. When a parent or grandparent wishes to give money (while they are living) or leave assets to a person with special needs,  it must be done carefully.   A child's eligibility for essential government  benefits can be compromised by improper gifts and bequests.  Benefits are  linked to the asset limits of the person with special needs, thereby making traditional planning and outright gifting problematic.

In our October 2014 newsletter, we discussed a new planning opportunity that was coming to Ohio: The Achieving a Better Life Experience (ABLE) Act.  Back then, the federal enabling law had not yet been passed.  Today, both the federal government and Ohio have passed enabling statutes and the Ohio Treasurer's Office is working on implementing the plan.  The details of this new strategy are coming into focus now and we want our clients and friends to be aware of these changes so they can act on this new opportunity when appropriate, or share it with friends and loved ones.
Similar to college 529 plans, the ABLE Act offers an account for people with special needs to have assets without compromising eligibility for Medicaid and Social Security.  Funds in these tax-free savings accounts can be used to pay for expenses related to the eligible individual's blindness or disability.  These accounts can hold money deposited by the individual with special needs, as well as monetary gifts from others. As suspected, there are restrictions on the accounts including limits to the annual deposit amount and a cap on the total amount in the account to remain eligible for Medicaid and Supplemental Security Income. 
We have been in regular contact with the Office of the Ohio Treasurer to track the progress of the ABLE Act.  Ohio may be the first state in the country to implement this program. The Treasurer is hoping to have a plan in place for individuals to open an ABLE account in early 2016.
The ABLE account is a new tool and may be part of an  overall plan for an individual with special needs. Please  send us an email  if you would like to receive a question and answer document we have created to further explain these developments.

Resch and Root, LLC | 5100 Bradenton Avenue, Suite C | Dublin, Ohio 43017
614.760.1801 | www.resch-root.com
Like us on FacebookFollow us on Twitter