Grace
As elder law attorneys, we will sometimes encounter the issue of kinship caregiving where an elderly relative has taken a grandchild into their care. This may be due to the involvement of the state department of family and protective services, as when a parent has been negligent and removal is required. Grandparents also step in when a parent becomes disabled or dies.
Generations United — an advocacy group created by several other nonprofits and advocacy groups such as AARP and the National Council on Aging — reports that about 7.8 million children across the United States live in households headed by grandparents or other relatives. Out of that 7.8 million, about 2.5 million grandparents report they are responsible for their grandchildren’s needs, and in about a third of these homes, neither of the children’s parents reside in the home with them.
Kinship caregiving by grandparents presents a special hardship because grandparents are often retired and on a “fixed income.” Therefore, it’s important for elder law practitioners to be aware of federal and state programs, and community supports and services, that may provide assistance.
For example, you may know that the Social Security disability and retirement programs include benefits for certain “auxiliaries,” such as dependent minor children, adult disabled children, and spouses. However, did you know that under certain circumstances grandchildren can be eligible auxiliaries too? If the grandchild is living with their grandparent because their parent is deceased or disabled, the grandchild also is eligible for a Social Security benefit on the earnings record of their grandparent. To be eligible, the grandchild must begin living with the grandparent when they are under age 18 and the grandparent must be entitled to and receiving a retirement benefit. Similarly, there is a benefit for the grandchild if the grandparent is disabled and receiving a disability payment. The child’s payment would be paid to the caregiving grandparent as the representative payee. A representative payee for a minor child may use these funds toward their own housing costs.
The retirement and disability programs are administered under Title II of the Social Security Act. Whereas, Title IV-E of the Social Security Act includes a federal program that provides funding to states for adoption assistance and kinship caregiving programs. These programs, administered by state departments (for example, departments of family and protective services), provide monthly payments to foster caregivers, including kinship caregivers like grandparents. Federal funding may be needs-based and dependent on whether the caregiver is licensed with the state. Most states provide some kind of state or local funding for foster caregiving payments. However, these programs often require the caregiver to become licensed with the state and submit to background checks. Additionally, payments may be based on whether the placement of the grandchild with the grandparent was because of a removal initiated by a state department or by court order.
Grandparents who are not eligible for Title IV-E payments, but who have limited income and resources, may be eligible for other income and resource-tested benefits such as Medicaid, TANF, and SNAP. Temporary Assistance to Needy Families (TANF) provides cash grants to needy children and also to grandparents with grandchildren who are in their care. However, each state may impose their own eligibility rules concerning income limits. Additionally, by federal law, TANF has work requirements which make this program unavailable for fully retired grandparents. The Supplemental Nutrition Assistance Program (SNAP) is a federal program under the U.S. Department of Agriculture that is administered by the states and provides food benefits to low-income working adults. However, it also is available to households where all individuals are receiving SSI or disability insurance benefits. Additionally, there is no work requirement for adults over 60 years old or adults who are caregivers to children 6 years of age or younger.
Additionally, all states administer the federal Children’s Health Insurance Program (CHIP) under Medicaid for children of low-income families. On September 29, 2023, CMS clarified that effective January 1, 2024, all states must offer continuous eligibility (CE coverage) for a 12-month period following an event that would otherwise causes a change in Medicaid eligibility. These events include termination of SSI benefits, and changes in income and household composition. This is good news for grandparent caregivers as it provides guaranteed healthcare coverage for at least one year after the grandchild’s removal from their Medicaid-eligible parents’ home.
For grandparents who do not meet the income or resource rules of the above-discussed federal and state administered programs, nonprofits and other private agencies may be able to fill in the “resources gaps.” Grandfamilies.org is one private agency that provides online resources to grandparent caregivers including a portal to every state law on grandparent caregivers, public benefits for each state, housing information, other financial assistance, and legal resources regarding guardianship (or conservatorship) and adoption.
Finally, grandparents also should consult with their tax professional regarding how to claim grandchildren as dependents, especially if a grandchild has lived with them for at least six months. They may also qualify for the child tax credit if they have earned income of at least $3,000.
Supporting the supporter is the best work of an elder law attorney. Great support can come from staying knowledgeable about financial programs that can add to the comfort and security of our elder law clients and their families.