MiABLE Accounts: Tax-Advantaged Savings for Michigan Families With Disabilities

Families raising a child with a disability often worry that an inheritance will cost their loved one crucial benefits. MiABLE Accounts offer a simpler alternative to a full trust for smaller, everyday savings goals.

This article explains how MiABLE Accounts work, their contribution limits, and how they fit alongside other Michigan estate planning tools.

What Is a MiABLE Account

MiABLE stands for Michigan Achieving a Better Life Experience. The Michigan Department of Treasury sponsors the program, and Ascensus administers it through the National ABLE Alliance.

Federal Authority Under the ABLE Act

Congress created ABLE accounts under 26 U.S.C. Section 529A. This federal law lets people with disabilities save money in a tax-advantaged account without losing eligibility for means-tested government benefits.

Michigan’s Enabling Statute: MiABLE Accounts

Michigan adopted its own framework at MCL 206.981 through 206.997. This state law authorizes MiABLE and aligns it with the favorable federal tax treatment available under Section 529A.

How MiABLE Accounts Protect Public Benefits

A MiABLE account owner controls the funds directly, unlike a trust, which requires a trustee’s approval for every expense. Contributions and earnings grow tax-free when the owner spends them on qualified disability expenses.

Contribution and Balance Limits: MiABLE Accounts

Michigan allows annual contributions up to $20,000 for 2026, matching the federal gift tax exclusion. Account balances can reach up to $100,000 without counting against SSI’s resource limit. Balances above that amount begin to count toward SSI eligibility, though Medicaid eligibility remains unaffected regardless of the account balance.

Coordinating MiABLE With a Special Needs Trust

Many families use both tools together instead of choosing one over the other. A trustee overseeing a larger special needs trust can direct smaller, regular contributions into a beneficiary’s MiABLE account. This approach preserves the trust’s oversight for larger sums while giving the beneficiary more day-to-day spending independence.

Who Qualifies for MiABLE

Eligibility generally requires that a qualifying disability began before a certain age. Federal law raised that age of onset from 26 to 46, effective in 2026. This change opened MiABLE accounts to many more Michigan adults with disabilities who did not previously qualify.

Common Mistakes

• Assuming a MiABLE account replaces the need for a special needs trust for larger inheritances
• Exceeding the annual contribution limit and triggering tax consequences
• Naming a MiABLE account owner as a direct beneficiary of a will without routing funds through a trust first
• Forgetting that Medicaid may recover remaining MiABLE funds after the beneficiary’s death
• Failing to update account beneficiary designations after a major life change
• Not confirming the current eligibility age before assuming a loved one doesn’t qualify

Related Resources

• Is Disability Planning Right for You?
• An Overview of MiABLE Accounts
• What Are MI-ABLE Accounts?

How Castle Wealth Group Legal Can Help

MiABLE accounts work best as one piece of a coordinated plan, not a stand-alone solution. Castle Wealth Group Legal helps Michigan families combine MiABLE accounts, special needs trusts, and guardianship planning into one cohesive strategy. Contact our Brighton office to schedule a consultation and protect your loved one’s benefits and future.