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Answers at your fingertips

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Does the Medicaid recapture of funds in an ABLE account as described in the Federal ABLE ACT known as “clawback” apply to Alabama ABLE accounts?
As established by the Federal ABLE Act, funds remaining in the account upon the beneficiary’s death, after final expenses are paid, may be subject to reimbursement to the state for Medicaid-related services. Medicaid must initiate reimbursement. The amount of any Medicaid payback is calculated... Read more
What’s the difference between an ABLE account and a Special Needs Trust?
Although both can be established to enable a person with a disability to acquire assets without jeopardizing benefits, it’s important to know that an ABLE account allows the person with the disability to open and manage the account on his/her own. The ABLE account must be used for any qualifying... Read more
Can I transfer an existing ABLE account into my Alabama ABLE account?
Yes, but you can only make one rollover every 12 months. You can use an ABLE to ABLE Rollover Form to get started. An ABLE account can also be rolled over to an eligible member of the family upon the death of the original beneficiary who opened the account, provided a successor beneficiary was... Read more
Is the ABLE account considered part of the estate after the death of a beneficiary?
Yes. As part of the estate, funds in the ABLE account are subject to federal estate tax. After the death of the beneficiary, the remaining funds will be taxed and can be used to pay any outstanding qualified disability expenses of the decedent and any State claim under section 529A(f) before they... Read more
What is a successor designated beneficiary?

A successor for an ABLE account must be a sibling, step-sibling, or half-sibling of the Account Owner and must also qualify for an ABLE account. A successor must be added to the account before the death of the beneficiary.