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What I didn't understand is if they have to fill out paperwork detailing how they use the money to benefit the child, how do they say it's all in a college fund? that's the part I didn't understand.
Easy, on the paperwork they 'charge out' items that are allowed to be paid out of the child's SS, but really pay for these items out of their money.
So say they pay $600 a month for a 2 bedroom apartment, they can 'charge' $300 (one room out of 2, so 1/2 the rent) to the child's SS. Then they spend $600 a month on food and charge $200 ( one of three people they are feeding, so 1/3 the food cost) against the child's SS. Do the same thing for the utilities and you have the total SS covered--without clothes or trips to Disney or movies or sports or any of the other things a child spends money on. Its EASY to cover the total amount of the child's SS check with the costs of the basics.
But if the parents can afford to pay the basics out of their own money, then they can do that in realty, but put the child's SS as spent on the basics on paper for the reporting.
That frees up the child's SS for a savings account.
OR one could say the grandparents put their money into the college fund, and the child's SS paid for the basic expenses. Does not really matter, money is money
And the OP should do the same--cost out the child's money on paper and save theirs in the child's name. Avoids any possible problems.
I just came upon this thread, it is pretty common in Expat communities around the world. I collect SS (63) and both my sons 11 and 1 do as well. Also the spouse is entitled until the youngest turns 16 (My spouse does not collect) Combined my sons get about $1500.00/mth. One friend is 74 and his 4 y/o gets about $3,000/mth.
That is because Social Security does not mention this benefit to retirees with minor children...you have to ask for it. If it wasn't for my Aspergers and my overanalytical nature, I would not have known about this benefit.
That's the problem with Social Security. Political hacks have been giving away the money to people that are not entitled to it. Refugees now get Social Security. IT's a massive fraud and theft.
I just came upon this thread, it is pretty common in Expat communities around the world. I collect SS (63) and both my sons 11 and 1 do as well. Also the spouse is entitled until the youngest turns 16 (My spouse does not collect) Combined my sons get about $1500.00/mth. One friend is 74 and his 4 y/o gets about $3,000/mth.
Huh? How is this possible? "Within a family, a child can receive up to half of the parent’s full retirement or disability benefit." https://www.ssa.gov/pubs/EN-05-10085.pdf
Easy, on the paperwork they 'charge out' items that are allowed to be paid out of the child's SS, but really pay for these items out of their money.
So say they pay $600 a month for a 2 bedroom apartment, they can 'charge' $300 (one room out of 2, so 1/2 the rent) to the child's SS. Then they spend $600 a month on food and charge $200 ( one of three people they are feeding, so 1/3 the food cost) against the child's SS. Do the same thing for the utilities and you have the total SS covered--without clothes or trips to Disney or movies or sports or any of the other things a child spends money on. Its EASY to cover the total amount of the child's SS check with the costs of the basics.
But if the parents can afford to pay the basics out of their own money, then they can do that in realty, but put the child's SS as spent on the basics on paper for the reporting.
That frees up the child's SS for a savings account.
OR one could say the grandparents put their money into the college fund, and the child's SS paid for the basic expenses. Does not really matter, money is money
And the OP should do the same--cost out the child's money on paper and save theirs in the child's name. Avoids any possible problems.
Multiple ways to commit fraud. Why didn't the OP think of that?!
The payment for minor children of SS recipients has been in effect for quite awhile. My father was 50 when I was born. At age 65, when he began SS, I was 15 and started getting a check as well. This was in 1968. So it's not some newfangled law implemented to ripoff the taxpayer.
Most people don't have minor children when they reach SS age. So I imagine the law isn't well known. In any case, I doubt the numbers are great enough to make much of a dent in the federal budget.
I didn't know about this law either, I thought either the recipient had to be a a minor child of a deceased SS retiree, or the parent had to be disabled for minor children to receive benefits.
I know of several retirees who have had to take custody of their minor grandchildren after the parents were unable to care for the children ( usually when they lost custody of the children due to ongoing drug addiction, criminal activity, but sometimes after the death of the parents). Trying to raise children on a retiree's income would be challenging, to say the least, for many people, and additional income from an SS benefit to a minor dependent could make a difference. I imagine though, to qualify for those benefits the retirees would have to adopt their grandchilden.
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