HB30 Alabama 2018 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Matt Fridy
Republican
Session: Regular Session 2018
Title: Alabama Family Trust Corporation, compliance with federal Social Security law and rules, provisions for successor life beneficiary deleted, disbursement of remainder including reimbursement for medical assistance, trust not to affect Medicaid approps, Secs. 38-9B-2, 38-9B-3, 38-9B-5 am'd.
Summary: HB 30 would require the Alabama Family Trust Corporation to follow Social Security rules, remove the successor life beneficiary provision, and set rules for ending the trust and reimbursing medical assistance without affecting Medicaid funding.
What This Bill Does
It requires the Alabama Family Trust Corporation to take all steps necessary to comply with Social Security Administration rules. It deletes provisions that would designate a successor life beneficiary and establishes how remaining trust assets are disbursed upon termination, including reimbursements for medical assistance paid by government entities. It clarifies that the AFT Trust will not impact state Medicaid Agency appropriations. It sets up governance and administration to ensure the trust coordinates with government benefits and remains compliant with federal and state laws.

Who It Affects
Life beneficiaries with impairments who receive benefits from the AFT Trust, whose accounts are managed to preserve eligibility for means-tested government benefits.
Contributors/donors to the AFT Trust, who may revocate or waive revocation rights under certain conditions and whose contributions are allocated to life beneficiary accounts.
The Alabama Family Trust Corporation and its Board of Trustees, who must administer the AFT Trust and AFT Charitable Trust in compliance with SSA rules and IRS requirements.
The Alabama Medicaid Agency and other governmental entities, which may be reimbursed for medical assistance upon certain trust disbursements.

Key Provisions
Amends sections to require the AFT Corporation to comply with Social Security Administration rules and regulations.
Deletes the prior successor life beneficiary mechanism and establishes new termination/disbursement rules for remaining trust assets, including reimbursement for medical assistance paid by government entities.
Specifies that the AFT Trust and AFT Charitable Trust must be administered so life beneficiaries remain eligible for means-tested government benefits and that trust activities do not reduce state Medicaid appropriations.
Governs the structure: the AFT Corporation administers the AFT Trust and AFT Charitable Trust, maintains separate accounts for each life beneficiary, and outlines how income and principal are used and distributed.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Alabama Family Trust