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 medial bills and the need for special medical equipment and supplies.

The Alabama Family Trust (AFT) provides trust services for persons with such disabilities. The organization was created by the State of Alabama Legislature in 1994 to encourage, enhance, and foster the provision of medical, social, or other supplemental services for persons with a mental or physical impairment (See Code of Alabama 1975 Chap. 38-9B). The AFT is a 501 (c) (3) general non-profit organization established for the purpose of administering special needs trusts for the disabled.

Special Needs trusts are a type of trust specifically designed for individuals with disabilities. If properly structured and administered, special needs trusts do not affect an individual's eligibility for governmental benefits such as SSI and Medicaid.

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.

This is where the Alabama Family Trust fulfills a need. The AFT provides for the establishment of a trust from which funds may be disbursed to supplement the care, support, shelter, and treatment of the designated disabled person, or beneficiary. As written, the legislation establishing the AFT is fairly broad as to what may be expended on behalf of the trustŐs 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 be established with a minimum of funds. The current minimum for trust establishment is $100.00 accompanied with a one-time application/administrative fee of $400.00.

Please take a moment to look at the documents for setting up a trust here and feel free to contact us with any questions you have.

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