Exceptional Parent - February 2010 - (Page 59) Divorce and Special Needs Parenting the payments. The amount of a child’s SSI payment also depends upon several other factors, including the age of the child, the living arrangements in the household, whether the custodial parent is charging rent for the child’s living at home, the amount of any earned income from a child’s employment, and other cash or gifts a child receives during a month. The child’s SSI can easily be eliminated by child support payments being made directly to the custodial parent or other person who applies it for the child’s benefit. The policy behind SSI may help parents and divorce lawyers understand this better. SSI payments, in theory, provide government assistance with food and shelter (rent, garbage, and sewer charges, heating, cooling, water, property taxes and insurance) for the individual with a disability. When other funds such as child support, that can be used for food and shelter items, are supplied for the child’s benefit, the government regulations require the SSI amount to be reduced because this additional support source exists, whether used for these purposes or not. While limitations apply concerning the amount of reduction to a person’s SSI when another individual, trust, or other entity directly pays an SSI recipient’s food, power bill, rent or other shelter expenses, this differs when child support is paid directly to the custodial parent. Except for excluding one-third (1/3) of the child support payment for a child under 18 and the first $20.00 of any type of income, no other exclusions apply. Social Security regulations require that all changes in financial circumstances of a person receiving SSI must be promptly reported by the person who receives the SSI check. SSI recovers overpayments made in error. When a person with a disability is not eligible for the full SSI amount he or she has already received, the overpayment must be repaid (sometimes by reduction of the future monthly benefits). If the monthly child support payment of an age 18 or older child exceeds the child’s SSI amount by $19.00, It is far better to address these issues during the divorce process, rather than after discovering that SSI has been reduced or lost. then in 36 states, the child’s SSI and Medicaid will both be lost. Some children with special needs will not qualify for SSI or Medicaid if they are under age 18 because of the parents’ assets and income. In that case it may be advisable to wait on having support payments assigned to a special needs trust until the child is 18. Upon reaching age 18, the child may likely qualify for SSI when the income and assets of the parents no longer count. Be careful not to confuse age 18 with the state’s age of majority (the age a person becomes an adult—which varies among the states from ages 18 to 21). Some children below age 18 do qualify for SSI, however. The child may have a disability that prevents the custodial parent from full-time employment, so that earnings in the post-divorce, single-parent household are low enough for the child to qualify. The “countable” resources (note that a home, furniture, car, personal effects, and some other items do not count) of that parent may be below the $2,000.00 resource threshold, allowing the child to qualify for SSI. Consider this example of the benefits of ordering the payment to a trust: a 16-yearold child, John, is eligible for $475.00 per month of SSI. The divorce decree orders the non-custodial parent to pay $750.00 per month in child support directly to the custodial parent. Since Social Security regulations exclude one-third (1/3) of the child support payment from countable income, $500.00 counts. When the $500.00 is applied against the $475.00 of SSI, the first $20.00 is ignored, but the remaining $480.00 completely displaces the $475.00 of SSI, causing John’s loss of SSI eligibility. Eventually his Medicaid will also be terminated. The custodial parent who anticipated having the $750.00 child support plus $475.00 of SSI and Medicaid co-pays to pick up drug costs not covered by other health care insurance will be disappointed, at the very least. If instead the divorce decree required the non-custodial parent to make the $750.00 monthly payment for John directly to his special needs trust, John would also be receiving the $475.00 of SSI. The non-custodial parent would not be any worse off under this arrangement, and John and his custodial parent could have much more. The additional costs to have the self-settled special needs trust and carefully crafted divorce order prepared in the divorce proceeding are quickly recouped by the retention of SSI and Medicaid. In this example, note that if John had been 18, and even if he was then eligible for the maximum SSI amount of $674.00, the $750.00 of child support directly to his parent would have offset all of his SSI, and caused immediate termination or reduction of his Medicaid. It is far better to address these issues during the divorce process, rather than after discovering that SSI has been reduced or lost. After the parents agree upon (or the court determines) the monthly contribution by the non-custodial parent for the child with special needs, the divorce lawyer(s) should contact an attorney with experience drafting the appropriate special needs trusts. This type of special needs trust differs from the more traditional type of special needs trust that a continued on page 60 www.eparent.com/EP MAGAZINE • February 2010 59 http://www.eparent.com Table of Contents for the Digital Edition of Exceptional Parent - February 2010 Exceptional Parent - February 2010 Contents Ancora Imparo New Products Further Reading Movie Review Organizational Spotlight What's Happening Insight on Federal Policy. This Month's Focus: Section 504 Search & Respond The Feeding of Great Children: The Impact of Nutrition on Learning Jump with Jill - High-Energy "Rockstar Nutritionist" Jill Jayne Gets Kids Moving - And Eating Right From Diagnosis, to Life Saving Therapy, to Hollywood: The Journey of John Crowley Research Frontiers: Understanding Science, Unlocking Potential Talking Transition - An Interview with An Expert SpecialCare: Getting and Staying Organized - The Effort Pays Off in Many Ways What You Eat Can Make a Difference The Positive Impact of Specialized Diet Food Intervention: How Do I Get Started? American Academy of Developmental Medicine and Dentistry (AADMD) Who Gets to Be an Advocate? Special Needs Alliance Families Reaching Professionals Living With a Disability Exceptional Parent - February 2010 Exceptional Parent - February 2010 - Exceptional Parent - February 2010 (Page Cover1) Exceptional Parent - February 2010 - Exceptional Parent - February 2010 (Page Cover2) Exceptional Parent - February 2010 - Exceptional Parent - February 2010 (Page 1) Exceptional Parent - February 2010 - Contents (Page 2) Exceptional Parent - February 2010 - Contents (Page 3) Exceptional Parent - February 2010 - Contents (Page 4) Exceptional Parent - February 2010 - Contents (Page 5) Exceptional Parent - February 2010 - Ancora Imparo (Page 6) Exceptional Parent - February 2010 - Ancora Imparo (Page 7) Exceptional Parent - February 2010 - New Products (Page 8) Exceptional Parent - February 2010 - Further Reading (Page 9) Exceptional Parent - February 2010 - Movie Review (Page 10) Exceptional Parent - February 2010 - Organizational Spotlight (Page 11) Exceptional Parent - February 2010 - What's Happening (Page 12) Exceptional Parent - February 2010 - What's Happening (Page 13) Exceptional Parent - February 2010 - Insight on Federal Policy. This Month's Focus: Section 504 (Page 14) Exceptional Parent - February 2010 - Insight on Federal Policy. This Month's Focus: Section 504 (Page 15) Exceptional Parent - February 2010 - Search & Respond (Page 16) Exceptional Parent - February 2010 - Search & Respond (Page 17) Exceptional Parent - February 2010 - Search & Respond (Page 18) Exceptional Parent - February 2010 - Search & Respond (Page 19) Exceptional Parent - February 2010 - The Feeding of Great Children: The Impact of Nutrition on Learning (Page 20) Exceptional Parent - February 2010 - The Feeding of Great Children: The Impact of Nutrition on Learning (Page 21) Exceptional Parent - February 2010 - Jump with Jill - High-Energy "Rockstar Nutritionist" Jill Jayne Gets Kids Moving - And Eating Right (Page 22) Exceptional Parent - February 2010 - Jump with Jill - High-Energy "Rockstar Nutritionist" Jill Jayne Gets Kids Moving - And Eating Right (Page 23) Exceptional Parent - February 2010 - From Diagnosis, to Life Saving Therapy, to Hollywood: The Journey of John Crowley (Page 24) Exceptional Parent - February 2010 - From Diagnosis, to Life Saving Therapy, to Hollywood: The Journey of John Crowley (Page 25) Exceptional Parent - February 2010 - From Diagnosis, to Life Saving Therapy, to Hollywood: The Journey of John Crowley (Page 26) Exceptional Parent - February 2010 - From Diagnosis, to Life Saving Therapy, to Hollywood: The Journey of John Crowley (Page 27) Exceptional Parent - February 2010 - From Diagnosis, to Life Saving Therapy, to Hollywood: The Journey of John Crowley (Page 28) Exceptional Parent - February 2010 - From Diagnosis, to Life Saving Therapy, to Hollywood: The Journey of John Crowley (Page 29) Exceptional Parent - February 2010 - Research Frontiers: Understanding Science, Unlocking Potential (Page 30) Exceptional Parent - February 2010 - Research Frontiers: Understanding Science, Unlocking Potential (Page 31) Exceptional Parent - February 2010 - Research Frontiers: Understanding Science, Unlocking Potential (Page 32) Exceptional Parent - February 2010 - Research Frontiers: Understanding Science, Unlocking Potential (Page 33) Exceptional Parent - February 2010 - Research Frontiers: Understanding Science, Unlocking Potential (Page 34) Exceptional Parent - February 2010 - Research Frontiers: Understanding Science, Unlocking Potential (Page 35) Exceptional Parent - February 2010 - Research Frontiers: Understanding Science, Unlocking Potential (Page 36) Exceptional Parent - February 2010 - Talking Transition - An Interview with An Expert (Page 37) Exceptional Parent - February 2010 - Talking Transition - An Interview with An Expert (Page 38) Exceptional Parent - February 2010 - Talking Transition - An Interview with An Expert (Page 39) Exceptional Parent - February 2010 - SpecialCare: Getting and Staying Organized - The Effort Pays Off in Many Ways (Page 40) Exceptional Parent - February 2010 - SpecialCare: Getting and Staying Organized - The Effort Pays Off in Many Ways (Page 41) Exceptional Parent - February 2010 - SpecialCare: Getting and Staying Organized - The Effort Pays Off in Many Ways (Page 42) Exceptional Parent - February 2010 - SpecialCare: Getting and Staying Organized - The Effort Pays Off in Many Ways (Page 43) Exceptional Parent - February 2010 - What You Eat Can Make a Difference (Page 44) Exceptional Parent - February 2010 - What You Eat Can Make a Difference (Page 45) Exceptional Parent - February 2010 - The Positive Impact of Specialized Diet (Page 46) Exceptional Parent - February 2010 - The Positive Impact of Specialized Diet (Page 47) Exceptional Parent - February 2010 - The Positive Impact of Specialized Diet (Page 48) Exceptional Parent - February 2010 - Food Intervention: How Do I Get Started? (Page 49) Exceptional Parent - February 2010 - Food Intervention: How Do I Get Started? (Page 50) Exceptional Parent - February 2010 - American Academy of Developmental Medicine and Dentistry (AADMD) (Page 51) Exceptional Parent - February 2010 - American Academy of Developmental Medicine and Dentistry (AADMD) (Page 52) Exceptional Parent - February 2010 - American Academy of Developmental Medicine and Dentistry (AADMD) (Page 53) Exceptional Parent - February 2010 - American Academy of Developmental Medicine and Dentistry (AADMD) (Page 54) Exceptional Parent - February 2010 - American Academy of Developmental Medicine and Dentistry (AADMD) (Page 55) Exceptional Parent - February 2010 - Who Gets to Be an Advocate? (Page 56) Exceptional Parent - February 2010 - Who Gets to Be an Advocate? (Page 57) Exceptional Parent - February 2010 - Special Needs Alliance (Page 58) Exceptional Parent - February 2010 - Special Needs Alliance (Page 59) Exceptional Parent - February 2010 - Special Needs Alliance (Page 60) Exceptional Parent - February 2010 - Special Needs Alliance (Page 61) Exceptional Parent - February 2010 - Families Reaching Professionals (Page 62) Exceptional Parent - February 2010 - Families Reaching Professionals (Page 63) Exceptional Parent - February 2010 - Living With a Disability (Page 64) http://www.eparentdigital.com/nxtbooks/exceptionalparent/201009 http://www.eparentdigital.com/nxtbooks/exceptionalparent/201008 http://www.eparentdigital.com/nxtbooks/exceptionalparent/201007 http://www.eparentdigital.com/nxtbooks/exceptionalparent/201006 http://www.eparentdigital.com/nxtbooks/exceptionalparent/201005 http://www.eparentdigital.com/nxtbooks/exceptionalparent/201004 http://www.eparentdigital.com/nxtbooks/exceptionalparent/201003 http://www.eparentdigital.com/nxtbooks/exceptionalparent/201002 http://www.eparentdigital.com/nxtbooks/exceptionalparent/2010rg http://www.eparentdigital.com/nxtbooks/exceptionalparent/200912 http://www.eparentdigital.com/nxtbooks/exceptionalparent/200911 http://www.eparentdigital.com/nxtbooks/exceptionalparent/200910 http://www.eparentdigital.com/nxtbooks/exceptionalparent/200909 http://www.eparentdigital.com/nxtbooks/exceptionalparent/200908 http://www.eparentdigital.com/nxtbooks/exceptionalparent/200907 http://www.eparentdigital.com/nxtbooks/exceptionalparent/200906 http://www.nxtbookMEDIA.com
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