New York Codes, Rules and Regulations
Title 2 - DEPARTMENT OF AUDIT AND CONTROL
Chapter IV - Miscellaneous Rules
Part 156 - The New York Achieving A Better Life Experience Savings Account Act
Section 156.5 - Transfer to State

Subject to any outstanding payments due for qualified disability expenses, upon the death of the designated beneficiary, all amounts remaining in the qualified ABLE account not in excess of the amount equal to the total medical assistance paid for the designated beneficiary after the establishment of the account, net of any premiums paid from the account or paid by or on behalf of the beneficiary to the State's Medicaid Buy-In or Medicare Savings programs, shall be distributed to the State upon the filing of a claim for payment by the State. For the purposes of this section, the State shall be a creditor of the account and not a beneficiary. Any amount remaining in the qualified ABLE account after any state recovery will become part of the designated beneficiary's estate or may be transferred to a successor designated beneficiary, if such a successor has been named to take effect upon the death of the original designated beneficiary, in accordance with federal regulations adopted under section 529A of the Internal Revenue Code.