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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 are transferred to the beneficiary's estate or a successor designated beneficiary.
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What happens after the death of a beneficiary? Is there a Medicaid payback?

In the event of the death of a beneficiary, the funds from their ABLE account can be used by his or her estate to repay any outstanding eligible expenses or funeral and burial costs. If the beneficiary was receiving Medicaid benefits, Medicaid can file a claim for a payback upon the beneficiary’s death and any premiums paid as part of the Medicaid Buy-In Program can be deducted from the balance left. The Medicaid recovery is calculated from the date the beneficiary opened the ABLE account.
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How is this different from a Special Needs Trust or Pooled Trust?

An ABLE account won’t replace a Special Needs Trust or Pooled Trust. There are some key differences that are meant to give people with disabilities and their families more options.With an ABLE account: There are fewer expenses than setting up a trust.The beneficiary owns the funds and can access them for eligible expenses.Earnings are tax-free advantaged.There’s a yearly limit of $18,000 in 2024 and a lifetime maximum of $400,000.Funds can be used for housing without affecting benefits.With a Special Needs Trust or Pooled Trust: You have to set up a trust.The beneficiary has to get approval of the trustee to receive a disbursement.The earnings are taxed at trust rates.There are no limits on contributions or balances.Amounts in a Third-Party Special Needs Trust are generally ...
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