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 or distributing account balances upon the death of a designated 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 transactions.

Importantly, the bill introduces new language that protects the remaining balance in the account of a deceased designated beneficiary from state recovery for medical assistance received after the account's establishment. It specifies that the state will not seek recovery of any amounts remaining in the account or any amounts distributed from the account upon the beneficiary's death concerning medical assistance received. Furthermore, the state is prohibited from filing 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 The original section 77-1403 is repealed as part of this legislative update.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