While ABLE Accounts provide advantages, they are not always the ideal solution. Potential drawbacks include:
- Age of onset restriction: Only individuals whose disability began before age 26 are eligible. A special needs trust may be a better option for those who do not meet this requirement.
- Management issues: The beneficiary usually oversees the account. If a family member must manage it and later becomes unavailable, additional legal steps may be necessary to appoint a conservator or representative.
- Contribution and account limits: There are annual and lifetime contribution limits, and each person may have only one ABLE Account. A special needs trust may be more suitable for larger financial gifts or multiple funding sources.
