Many Americans depend upon government 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 and supplies.
Special Needs Trusts or SNT, are a type of trust specifically designed for individuals with disabilities. The purpose for using a special needs trust is to provide a means to improve the quality of life of the disabled beneficiary without jeopardizing current or future eligibility for means tested benefits such as SSI and Medicaid.
However, because of resource limitations, financial assistance including gifts and inheritance 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 $2000.
This is where the Alabama Family Trust fulfills that special need. The Alabama Family Trust (AFT Statute) provides for the establishment of a trust from which funds may be disbursed to supplement the care, support and treatment of the designated disabled person or beneficiary.
The current minimum initial contribution required to establish an individual trust is $1,500 which includes a $750 set-up fee. Our team of professional staff members will be happy to assist you with any questions as you begin establishing a trust for a family member or friend.
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Simply fill out the contact form today to learn more about how Alabama Family Trust can help.