Consumer Law - Simms Law Firm

If you or a family member is disabled it is advisable to put away some of their stimulus aid in special accounts in order to keep their funds safe.

These special accounts are called Achieving a Better Life Experience (ABLE) accounts. These types of special savings accounts were introduced in 2016 as a vehicle for people with disabilities to achieve “greater financial security and more independence.”

By using ABLE accounts, those with disabilities “can save money in the tax-favored accounts without risking the loss of need-based government benefits, like health insurance or supplemental income.”

As of now, 43 states and Washington D.C. including Florida, offer ABLE. Although these special accounts have been around for a few years, interest in the accounts has grown due to federal pandemic relief putting more cash in people’s hands. ABLE advocates are spreading the word about the importance of saving some or all of stimulus check funds in these special accounts.

The benefits of taking advantage of ABLE accounts by placing stimulus aid funds in them include:

People with disabilities often struggle financially and rely on federal aid, and cannot qualify for Medicaid or Supplemental Security Income if they have more than $2,000 in savings or other assets. These accounts help low-income disable people avoid this detriment.
Stimulus payments are not considered income, meaning you can spend the money how you please. However, if the money isn’t spent within 12 months, it will be counted against asset limits and could disqualify disabled people from benefits. If this money is deposited in an ABLE account, it will not be considered when counting toward the $2,000 cap.

Call the Law Offices of Debra G. Simms at 386.256.4882 to learn more. We are currently offering free consultations via video conference to assist you with your needs.

This blog post is not case-specific and is provided only for educational purposes and is not intended to provide specific legal advice. Blog topics may or may not be updated and entries may be out-of-date at the time you view them.

The Secure Act was signed into law on December 20, 2019, by President Donald Trump. This new law ends the availability for beneficiaries of inherited IRAs to stretch the tax-deferred and/or tax-free growth of the assets within it over the beneficiaries’ life-time.

Under the new law, non-spouse beneficiaries will have to withdraw all the funds in the inherited IRA within 10 years from the death of the account holder. It applies to IRAs inherited after December 31, 2019.

An exception to the new 10-year rule is for disabled and minor children.

The new Secure Act could significantly alter your estate planning goals. The Law Office of Debra G. Simms is holding free seminars to discuss how the new law might affect you. Contact us to reserve a seat.

Call the Law Offices of Debra G. Simms at 386.256.4882 to learn more.

Already struggling with home foreclosures, harsh bank and credit card fees, and now, other financial challenges such as the damage from Hurricane Sandy, Americans have also been falling victim to the threat of debt settlement schemes that promise to make clients “debt free” over a relatively short period of time. Unfortunately, in my legal practice, I have too often seen clients who have pursued private debt settlement services before seeking my help, and have found themselves facing not relief, but even steeper financial losses.

I am stating this loudly and clearly: the vast majority of uninformed consumers end up with more red ink, not the promised debt-free outcome.

There is widespread documentation that despite the fact that the debt settlement industry is regulated by state Attorneys General and the FTC, entering into an agreement with debt settlement companies is very risky, very expensive, and often times, very unsuccessful.

Here is one trap: The debt settlement company tells you to default on your debts. The reason they are telling you this is because many creditors will not negotiate reduced balances if you are still current on your bills. But if your debt is not settled out, you will face fines, penalties, higher interest rates, and even more aggressive debt-collection efforts including litigation and wage garnishment. In most cases, the consumer is left worse off than when they started.

Another risk that these companies don’t tell you about is that if you are successful in debt settlement, you may find yourself with a new bill: tax liability. If reported to the IRS, and unless you are legally insolvent, the amount of forgiven debt is considered income and is taxable!

Real help for debt relief is available. If you have a single debt and some cash on hand, try to negotiate the settlement by yourself. Creditors typically require 25 to 70 percent on the dollar to settle a debt. If you have multiple creditors and either cash on hand or extra cash at the end of the month, you may want to consult a non-profit credit counseling agency. But make sure to check it out first.

Better yet, consult an attorney – attorneys are debt collectors and we are regulated by our state bar associations. We can negotiate debt. We can also discuss other options, such as bankruptcy,which is a legal proceeding that offers a fresh start for consumers who can’t repay their debts.

The Law Office of Debra G. Simms, P.A. offers consultations for debt negotiation and bankruptcy. Call us now for your consult in one of our central Florida offices. We can meet with you in Orlando, and Daytona Beach.

Debra G. Simms

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