PFS Special Education Support 2

Question 1

An ABLE account for a disabled beneficiary may hold a maximum lifetime contribution of:

Accepted Answer

The state 529 plan limit

Answer

ABLE account lifetime contribution limits mirror the state's 529 plan limit, which varies by state but is typically over $300,000.

Question 2

Which federal law requires schools to provide a Free Appropriate Public Education (FAPE) to students with disabilities?

Accepted Answer

The Individuals with Disabilities Education Act (IDEA)

Answer

IDEA mandates that eligible children with disabilities receive a Free Appropriate Public Education in the least restrictive environment.

Question 3

A parent sets up a special needs trust funded with $500,000. To preserve Medicaid eligibility, the trust must be structured as a:

Accepted Answer

Third-party special needs trust

Answer

A third-party special needs trust holds assets contributed by someone other than the beneficiary and does not trigger Medicaid payback requirements.

Question 4

Under Social Security rules, an individual on SSI who receives a cash gift of $2,000 would most likely:

Accepted Answer

Have SSI benefits reduced dollar-for-dollar after the $20 exclusion

Answer

SSI counts unearned income (like cash gifts) against benefits, with only a $20 general exclusion, reducing benefits dollar-for-dollar above that.

Question 5

A Qualified Disability Trust (QDT) differs from a standard complex trust in that it:

Accepted Answer

May claim the full personal exemption amount available to individuals

Answer

A QDT may use the full individual exemption amount ($4,700 indexed) rather than the $300 complex trust exemption, reducing taxable income.

(PFS) Personal Financial Specialist Practice Test