Happy Friday Everyone!
I’m writing with a few questions for other states related to their ABLE Accounts. Specifically, I have been asked to find out from states that have adopted a state statute on ABLE (529A) how the state structured estate recovery (clawback).
Does your state have mandatory estate recovery (clawback) of assets held in an ABLE account upon the death of the beneficiary? Or does your state have alternatives to mandatory estate recovery? According to the federal law, subsection (f) of the 529A law, there is enough ambiguity to forgo the actual recovery if a state chooses to forgo (under certain circumstances). There also is guidance from CMS in 2017 that stated recovery was only required for individuals over the age of 55, or individuals receiving LTSS and were subject to Post-Eligibility Treatment of Income.
Has your state considered or debated limiting recovery of ABLE accounts? I have seen
Virginia’s House Bill 887 from 2020 that limited the Commonwealth, its agencies, and instrumentalities from seeking recovery from an ABLE account, “unless required by federal law.” Have any other states gone this route?
Any info you can offer about your state would be greatly appreciated. Whether a past bill was considered but not approved, whether a bill was approved, or whether a bill is in the works would help too.
Thank you for your consideration!
Paul Jarvis
Liaison Officer
Ohio DD Council
(614) 644-5545