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LEGISLATIVE BILL 1240
Approved by the Governor April 14, 2026
Introduced by Murman, 38; Clements, 2; Holdcroft, 36; Lippincott, 34; Lonowski,
33; Bostar, 29.
A BILL FOR AN ACT relating to the achieving a better life experience program;
to amend section 77-1403, Revised Statutes Cumulative Supplement, 2024; to
change provisions relating to state recovery of certain amounts; and to
repeal the original section.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 77-1403, Revised Statutes Cumulative Supplement, 2024,
is amended to read:
77-1403 (1) Unless otherwise permitted under section 529A, the owner of an
account shall be the designated beneficiary of the account, except that if the
designated beneficiary of the account is a minor or has a custodian or other
fiduciary appointed for the purposes of managing such beneficiary's financial
affairs, a custodian or fiduciary for such designated beneficiary may serve as
the account owner if such form of ownership is permitted or not prohibited
under section 529A.
(2) Unless otherwise permitted under section 529A, the designated
beneficiary of an account shall be a resident of the state or of a contracting
state. The State Treasurer shall determine residency of Nebraska residents for
such purpose in such manner as may be required or permissible under section
529A or, in the absence of any guidance under section 529A, by such other means
as the State Treasurer shall consider advisable for purposes of satisfying the
requirements of section 529A.
(3) To the extent permitted by federal law, upon the death of a designated
beneficiary of an account, the owner of the account or the personal
representative of the designated beneficiary may have the balance of the
account transferred to another account under the program specified by the owner
of the account, the designated beneficiary, or the estate of the designated
beneficiary. If the balance of the account on the date of death is less than or
equal to five thousand dollars, the owner of the account or the personal
representative of the designated beneficiary may also have the balance of the
account distributed to an individual or individuals specified by the designated
beneficiary, the owner of the account, or the personal representative of the
designated beneficiary.
(4) At the time an account is established under the program and prior to
any transfer or distribution pursuant to subsection (3) of this section, the
State Treasurer shall notify the owner of the account, the designated
beneficiary, and the estate of the designated beneficiary, if applicable, of
the potential tax consequences of transferring or distributing funds pursuant
to subsection (3) of this section.
(5) Upon the death of a designated beneficiary and after the Department of
Health and Human Services has received approval from the Centers for Medicare
and Medicaid Services of the United States Department of Health and Human
Services:
(a) The state shall not seek recovery of any amount remaining in the
account of the designated beneficiary , or any amount distributed from the
account of the designated beneficiary upon the death of the designated
beneficiary, for any amount of medical assistance received by the designated
beneficiary or his or her spouse or dependent under the medical assistance
program pursuant to the Medical Assistance Act after the establishment of the
account; and
(b) The state shall not file a claim for the payment under subdivision (f)
of section 529A of the Internal Revenue Code, as amended.
Sec. 2. Original section 77-1403, Revised Statutes Cumulative Supplement,
2024, is repealed.
LB1240
2026
LB1240
2026
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