Alabama Family Trust

Article Submitted by Jeffrey N. Cotney, Esq. & David A. Tapley Alabama Family Trust. If you have any questions regarding the AFT, you can visit the program's web site at www.alabamafamilytrust.com, or you can contact the AFT's Executive Director, David Tapley at 334.242.3278 or 800.711.1303.

Many Americans depend upon governmental entitlements such as Medicaid and SSI to provide for their financial needs. Many of these individuals have mental or physical disabilities that substantially limit their major life activities. However, the financial resources provided by Medicaid and SSI are often insufficient to cover the day-to-day living expenses of those that depend upon these programs. This is particularly true of those with disabilities, who must also face the costs of increased medical bills and the need for special medical equipment.

However, because of prescribed resource limitations, such financial assistance from family and friends can adversely affect the disabled individual's eligibility for Medicaid and SSI. The current resource limit for Medicaid and SSI benefits is anything in excess of $2,000.00. This is where the Alabama Family Trust (AFT) fulfills a need.

The AFT provides for the establishment of a trust from which funds may be disbursed to supplement the care, support, habilitation and treatment of the designated beneficiary. As written, the legislation establishing the AFT is fairly broad as to what may be expended on behalf of the trust's beneficiary.
The AFT has beneficiaries who are already Medicaid and SSI recipients. It also has many individuals who become eligible for these governmental entitlements as they simultaneously establish an Alabama Family Trust for themselves or loved ones.

The trust may also be established with a minimum of funds. The current minimum for trust establishment is $100.00. A one-time application fee of $400.00 is also required at the time of trust establishment. Thus, technically, the minimum is $500.00.