SB17 Summary

• Requires the Alabama Family Trust Corporation to comply with all federal Social Security Administration rules, regulations, and policies to maintain beneficiaries' eligibility for government entitlements and tax-exempt status.

• Deletes provisions allowing successor life beneficiaries and establishes new disbursement procedures upon trust termination, including payment of taxes, administrative fees, a 10 percent retention for the AFT Charitable Trust, and reimbursement to states for medical assistance paid on behalf of beneficiaries.

• Specifies that the AFT Trust shall not affect appropriations to the Alabama Medicaid Agency and clarifies that AFT assets are not considered state money or revenue.

• Maintains existing provisions allowing revocation of contributions by non-life-beneficiary contributors and contributors' spouses, with 95 percent return if no benefits received or 95 percent return within five years of benefit use.

• Establishes procedures for trust termination when beneficiaries become ineligible, with disbursement provisions varying based on length of benefit use (90 percent distribution after five years versus 95 percent within five years).