Alabama Family Trust helps many of its life beneficiaries purchase vehicles for their use. In other circumstances, the trusts are able to pay mileage to individuals who are using their own cars to do things for the life beneficiary.
Cars for a life beneficiary
A life beneficiary who is receiving Supplemental Security Income and Medicaid is allowed to have a vehicle. When a life beneficiary does not have transportation, the life beneficiary’s trust account may be used to purchase a vehicle for the life beneficiary. If the trust may pay for car maintenance, repairs, gasoline, and insurance in lieu of mileage payments.
Mileage to handle business for life beneficiary
When an individual uses his or her own car to transport the Life Beneficiary or to travel to conduct business for the life beneficiary, the trust can pay mileage to the individual at the rate approved by the IRS. In this instance, Alabama Family Trust 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 purchased cars
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. If the trust with Alabama Family Trust buys an vehicle for a life beneficiary that is subject to a Medicaid pay-back, the vehicle must have a lien on it.
When the vehicle is ultimately sold, the funds will be returned to the Alabama Family Trust account where the funds can be used to purchase other items for the life beneficiary or applied toward reimbursement to Medicaid at the life beneficiary’s death.