Adults with disabling medical conditions often face increased overall living expenses and diminished earning potential. Planning carefully can help those with disabling medical conditions and their immediate family members make arrangements for long-term financial stability.
Federal statutes allow those with disabling conditions to save and invest. So-called ABLE accounts are known as STABLE accounts in Ohio. These important tools can help people with disabling medical conditions and their close family members plan in advance for future expenses.
What do Ohio families need to know about STABLE accounts?
What expenses they help address
Individuals with well-funded STABLE accounts can use those funds for qualified disability expenses. Any costs related to improving a person’s health, quality of life or independent living capability may be eligible for STABLE account payments.
Many people use funds for their basic housing costs, as well as utility bills and groceries. Funds can also cover medical and dental insurance premiums, as well as actual treatment expenses and medication costs.
STABLE funds can cover transportation expenses, tuition, job coaching and other educational or employment-related expenses. STABLE funds can cover costs related to support needs, including service animal expenses, home health aide costs and assistive technology, as well as expenses related to Legal needs or financial management.
How the law expanded eligibility
Restrictions on age affect who can create and fund STABLE accounts. The age of an individual at the onset of their disabling medical condition, rather than when starting the account, is what determines if they are eligible or not.
Previously, the law limited STABLE accounts to those with disability onset by the age of 26. The new law that took effect at the beginning of 2026 expands eligibility to individuals who incurred a disabling medical condition by the age of 46.
Accounts affect other benefits
Many people with disabling medical conditions rely on Medicaid to cover their medical expenses and Supplemental Security Income (SSI) for their routine living expenses. The Social Security Administration (SSA) does not consider the first $100,000 used to fund a STABLE account when determining if an individual is eligible for SSI.
If the account has more than $100,000, then the SSA may reduce or suspend benefits until the balance is below the legal limit. STABLE accounts have no impact on eligibility for Medicaid, and the funds are usually safe from Medicaid estate recovery efforts after the account owner passes.
Is a trust still necessary?
There is a cap of $20,000 per calendar year that can be deposited in a STABLE account. If an individual with needs based benefits like SSI or Medicaid receives a windfall of money exceeding $20,000, then a first party special needs trust may be required to protect such benefits.
Further, the funds in a STABLE account may be subject to a payback to the State of Ohio under Medicaid Estate Recovery laws. For estate planning purposes, a third-party wholly discretionary trust is recommended if a person wishes to leave a loved one with disabilities any assets or inheritance.
If STABLE account funding reaches $100,000 or more, diverting a portion of those funds to a trust could be beneficial. In cases where the individual funding the account or their primary guardian might make inappropriate decisions with account resources, securing the oversight of a trustee could be beneficial.
Families likely need to plan for the support needs of a loved one with a disabling medical condition. Working with an attorney to maximize the benefits of a STABLE account and possibly create a third-party wholly discretionary trust to dovetail it can provide continual financial support and peace of mind.
If you’re considering a STABLE account or want to explore whether a first-party special needs trust or third-party wholly discretionary trust is right for your family, we’re here to help. Contact our team today to discuss your options.