SB17 Alabama 2018 Session

Updated Feb 26, 2026

Low Interest

Summary

Primary Sponsor: Cam Ward
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: SB 17 would require the Alabama Family Trust Corporation to follow SSA rules, remove the successor life beneficiary provision, and specify how remaining trust funds are disbursed at termination (including reimbursements for medical assistance), while not affecting Medicaid appropriations.
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 allowed a successor life beneficiary and changes how funds are distributed when a life beneficiary’s account ends. It specifies that when the trust terminates or a life beneficiary’s account ends, remaining funds may be disbursed with reimbursement to government medical assistance programs, following rules set by the AFT Corporation. It states that the AFT Trust does not affect state Medicaid appropriations.

Who It Affects
Life beneficiaries and their families — lose the option to designate a successor life beneficiary; distributions at termination follow the new rules.
AFT Corporation and Board of Trustees — must administer the trust in line with SSA rules and the new termination/distribution provisions.
State government programs (e.g., Alabama Medicaid Agency) — may receive reimbursements for medical assistance paid on behalf of life beneficiaries; the act also clarifies that Medicaid appropriations are not reduced.

Key Provisions
AFT Corporation must take all steps necessary to comply with SSA rules.
Elimination of the successor life beneficiary provision.
Upon termination, the trust's remaining funds may be disbursed with reimbursement to medical assistance programs.
The AFT Trust will not affect Medicaid appropriations.
The act amends sections 38-9B-2, 38-9B-3, and 38-9B-5 to implement these changes and govern the AFT Charitable Trust and AFT Trust.

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