This bill amends section 77-1403 of the Revised Statutes Cumulative Supplement, 2024, concerning the Achieving a Better Life Experience (ABLE) program in Nebraska. The key changes include provisions that clarify the ownership of accounts, residency requirements for designated beneficiaries, and the process for transferring account balances upon the death of a beneficiary. Specifically, it allows for the account owner or personal representative to transfer the account balance to another account or distribute it to specified individuals if the balance is $5,000 or less. Additionally, the State Treasurer is required to notify relevant parties about potential tax consequences related to these transfers or distributions.

Importantly, the bill introduces new language that prohibits the state from seeking recovery of any remaining amounts in the account or any amounts distributed upon the death of the designated beneficiary for medical assistance received after the account's establishment. Furthermore, it states that the state shall not file a claim for payment under a specific provision of the Internal Revenue Code. The original section 77-1403 is repealed as part of this legislative update.

Statutes affected:
Introduced: 77-1403
Final Reading: 77-1403