On December 19, 2014, the President signed into law the Achieving a Better Life (ABLE) Act of 2014, which allows for disabled persons to have limited savings accounts, without jeopardizing any governmental benefits received by that disabled person. The Treasury is to create regulations with respect to ABLE act accounts. The ABLE account is intended to be similar to a 529 Plan. There is a limit on what can be contributed to the account, but the disabled person would have the ability to withdraw monies from the account to meet his or her needs on an on-going basis.
When divorced parties disagree as to contribution for college education expenses, one party will make application to the Court to enforce the settlement agreements. Court applications for contribution to college education expenses have recently changed. a request has been made for college or post-secondary school contribution, the party must attach all relevant information pertaining to that request.
For 2016, the IRS estate tax exclusions are as follows:
- the estate tax exclusion amount for deaths in 2016 is $5.45 million
- the annual exclusion for gifts is $14,000
- the applicable exclusion amount for lifetime gifts is $5.45 million