AFT helps many of its Life Beneficiaries by purchasing automobiles for the Life Beneficiary. AFT is also, under some circumstances, able to pay mileage to individuals that are using their own automobiles to do things for the Life Beneficiary.
Cars for a Life Beneficiary
A Life Beneficiary that is receiving SSI and Medicaid is allowed to have an automobile. When a Life Beneficiary does not have transportation, AFT can use assets from the Life Beneficiary’s trust account to purchase a vehicle for the life beneficiary. AFT can also pay for car maintenance, repairs, gasoline, and insurance. However, AFT cannot pay mileage, in this circumstance, because AFT is already paying all other expenses for the automobile.
Mileage to Handle Business for Life Beneficiary
When an individual transports the Life Beneficiary in the individual’s automobile; or, if the individual is using his or her own automobile to travel to conduct business for the Life Beneficiary, AFT can pay mileage to the individual at the rate approved by the IRS. In this instance, AFT must be able to verify that the mileage was truly for the Life Beneficiary and was for a purpose that will be accepted by Social Security as being for the sole benefit of the Life Beneficiary. For example, Social Security will not allow mileage to be paid to an individual simply to visit the Life Beneficiary.
Liens on Cars Purchased
When a Life Beneficiary is subject to a Medicaid pay-back at death, any assets held by the trust must be used to reimburse Medicaid for any expenses that Medicaid paid for the Life Beneficiary. This means if AFT buys an automobile for a Life Beneficiary that is subject to a Medicaid pay-back, the automobile must have a lien on it. When the car is ultimately sold, the funds will be returned to the AFT account where they can be used to purchase other items for the Life Beneficiary; or, be applied toward reimbursement to Medicaid at the Life Beneficiary’s death.