It isn’t often that we get to report about laws that are changing for the better, but the new changes to ABLE accounts (known as STABLE accounts in the state of Ohio), which took effect January 1, 2026, are very much changes for the better!
A STABLE account is simply a tax-advantaged savings account for individuals with disabilities. These accounts allow individuals with disabilities to save money that can be spent for disability-related expenses, like education, housing, and transportation, without jeopardizing their eligibility for government benefits. STABLE accounts are a great tool to use in conjunction with a special needs trust for an individual with disabilities, because money from a STABLE account can pay for shelter expenses, while an SNT cannot pay for shelter expenses without reducing public benefits that the individual receives.
Beginning in 2026, a major change will expand who can establish a STABLE account. Previously, eligibility was limited to individuals whose disability began before age 26. Under the new rules, a person whose disability began any time before age 46 will qualify.
These changes represent a huge upgrade to the law. Under the new rules, STABLE accounts are available to individuals who became disabled later in life, such as a person involved in a car accident who suffers from a traumatic brain injury. In addition, STABLE accounts are available to people who may have been disabled at a young age but not receive a formal diagnosis until later.
There are also now options available in some limited cases to allow the funds remaining in a STABLE account after the account owner dies to avoid Medicaid Estate Recovery. If you have a family member with a STABLE account, reach out to us for more details on how this may apply.