Financial help with raising grandchildren

By Marilyn Bowden • Bankrate.com

Highlights

· Some government programs offer tax breaks, subsidies or cash to caretakers.

· Taking advantage of these programs may require some form of legal custody.

· Guardianship grants physical and legal custody, but is not always best.

Raising children is expensive. This is especially true for some older people who, instead of winding down to a leisurely retirement, find themselves once again raising youngsters -- this time, their grandchildren. Financial and social programs can help, though many of them require some form of formal custody arrangement.

A number of government programs offer tax breaks, subsidies or even cash to those with dependents who are not their children, says Elaine King, vice president and director of Wealth & Well-Being Institute at Gibraltar Private Bank & Trust in Coral Gables, Fla. They include the following:

· Temporary Assistance for Needy Families. The benefits from this financial assistance program for low-income families, King says, may include cash and day care expenses, depending on the state and an applicant's situation. Even if a household's income is too high to qualify as a family, grandparents can apply for a child-only grant based on the child's income. This is a federal program administered by the state.

· Medicaid. Caregivers who are family members but not parents can apply in the child's name, says King. Qualifying criteria include the child's income and whether applicants have private health care insurance.

· Social Security Survivors Benefits. Children whose parents are deceased are often eligible for these.

· Supplemental Security Income. This benefit provides monthly benefits to the disabled, including disabled children.

· Earned income tax credit. Federal guidelines for working grandparents allow tax breaks if the taxpayer is caring full time for dependent children.

· Subsidized guardianship. Although not available everywhere, programs exist in some states to subsidize caretakers who are legal guardians.

The best way to find out what you're eligible for is to check with your local Social Security office, says King.

Custody options

Taking advantage of these programs may require not only proof of kinship but also some sort of legal custody, says Marty Platt Jendrek, professor of sociology and gerontology at Miami University in Oxford, Ohio.

In fact, she says, without custody, or at the very least written authorization from a parent, there can be problems with such basic things as registering a youngster at school or taking a child to a doctor.

The options vary from state to state and depend on whether the child's parents are living, says Jendrek.

One possibility is court placement or foster care. In this scenario, the court appoints the grandparents as caretakers, but retains legal custody of the child.

"Some will go for custody instead of full adoption, with the notion that the parents can come in at some other time," says Jendrek. "Most grandparents go to great lengths to make sure that the parent is involved in the child's life."

Guardianship is an option that grants grandparents physical and legal custody, but it can be expensive and emotionally fraught because it involves proving the child's parents are unfit.

Outright adoption is permanent custody, and is most common when the parents are no longer living.

Wednesday, October 8, 2014

This is my new blog where I hope to look into the challenges of grandparents who are now raising their grandchildren. First a little history. I am a single grandmother who's youngest son and his wife have severe drug issues. As a result I took control of my two precious grandsons three years ago. The oldest just turned 18 years old and the younger is now 16. It has been a challenge over these past few years not only emotionally but financially. My daughter is also helping to raise and support them as we all live together and it takes us both to make this work.

I have found there is little help for our segment of society even though it is growing by leaps and bounds. With the epidemic of drug addiction and the many who have been rendered helpless with these additions more and more grandparents are taking on the children to insure they have a safe and secure environment. There is little information and less available help for the grandparent in this situation.

It is so important that the children have an opportunity to lead a normal (as possible) life and there is no way that I would have ever turned my back on these two beautiful boys. It was a challenge to bring them from such a desperate situation and have them believe that they would not have to be the parents to their parents anymore. They had lived with no rules and no security for the past few years and as a consequence they would have a time of adjustment that was difficult for both them and me.

Establishing rules and boundaries was the first order of business. Calling home, checking in, not running away to avoid going home was no longer acceptable. This took some time but eventually it became clear to them that I really did care and needed to know they were OK. Not hurt, not in trouble, not wandering but at home, on the way home or secure with permission in another home.

Just making them a special place in my home was a challenge, they had to have bedding, clothes, toiletries and more just to get them started. As a single grandmother on a fixed income this was a challenge, but with the help of Goodwill we were able to pull a room together and they settled in.

It was important to us that the boys were secure and knew that we would care for them, love them and be certain they would always have a good place to call home. They soon discovered that they could invite their friends to our home and they would be welcome and not be exposed to any illicit activities. They began to accept the rules and appreciate their place in their home. Their parents knew this was the best thing for the boys and did not object or cause any issues because of the change.

As I continue this blog I will be searching for resources for other Grandparents raising their Grandchildren. Whether it be medical, financial or just how to cope with the kids at any age. I hope it helps those of you who click on and read.