[WSBAPT] social security question

Mon Mar 13 20:47:14 PDT 2023

  Law Office of
F.ANDREKITA SILVA
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March 13, 2023

I agree with Diane. 

I'll qualify by saying that I also don’t practice in the area of  
social security law. But I have had a couple cases where social  
security benefits that were paid were at issue. In my cases, the  
benefits paid were paid for the benefit of 1) a disabled child (under  
age 21) based on the child’s disability and in the other 2) benefits  
paid for a child based on the parent’s disability , and then benefits  
paid DIRECTLY to the child after 18th birthday, but while still in  
high school.

Diane is correct. Social security benefits paid for the benefit of  
another are first for the beneficiaries basic necessities food,  
housing, clothing, transportation and then for whatever else the child  
might need or want (vacations, entertainment, etc.). If grandmother  
was providing room and board for the child, unless grandmother was a  
miser, grandmother most certainly covered those expenses for the  
child. It’s not like the monthly benefit is a fortune….

So, if grandmother set the money aside, I would agree with Diane that  
grandmother is free to put the money into other endeavors. If those  
endeavors are for the child, it shouldn’t matter how old the child is  
and/ or for what purpose. If grandmother wants to buy a house for  
herself with money she saved up on child’s name, if it comes to  
someone’s attention, grandmother might have to provide an accounting  
of expenses for the grandchild to show she provided for the child’s  
needs and she is simply reimbursing herself. 

If grandmother put the money in an UTMA or an UGMA etc. an account  
that has rules, then she has to follow the rules  created for those  
accounts.  With UTMA’s, I know there is an age ( 21 or 23, I forget)  
where the funds become the child’s automatically. The financial  
institution will, literally, remove the custodian from the account and  
rename the account in the name of the child.

Once a child turns 18, based on the case I had,  if they are still  
eligible for benefits on the basis of another person's disability or  
retirement, the benefits are paid by SSA directly to the  
beneficiary/child. The disabled or retired person can't get their  
hands on them even if they are still supporting child. The child would  
have to voluntarily hand them over.

andrekita
Law Office of F. Andrekita Silva
1325 Fourth Avenue, Suite 2000
Seattle, Washington 98101
206-224-8288
www.seattle-silvalaw.com[1]

Quoting "Diane J. Kiepe" <DJKiepe at depdslaw.com>:

> So, at the risk of stepping over a line I don’t practice in, but  
> intuitively my thought is that just because grandparent segregated  
> the money should not mean it should have to be released at age.  I  
> view the payments to the guardian for the benefit of the child –  
> somehow the child was fed, housed, transported and clothed so really  
> some (all?) is really the grandparents I would suggest and she is  
> free to make a gift of such money into trust to keep it more  
> protected.
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>    Now if the money is excess funds and the child’s social security  
> was used for the items mentioned above, I’d reconsider.
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>    I have zero legal authority but it just seems to me that there is  
> some room for planning.  Even if it is setting up a Custodial  
> Account until age 25 as allowed in WA.
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>     /Diane J. Kiepe/
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>     / /
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>     Diane J. Kiepe
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>     Douglas Eden
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>     717 W. Sprague Ave.
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>     Suite 1500
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>     Spokane, WA  99201
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>     djkiepe at depdslaw.com
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>     509-455-5300
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>      FROM: wsbapt-bounces at lists.wsbarppt.com  
> <wsbapt-bounces at lists.wsbarppt.com> ON BEHALF OF Shannon Jones
> SENT: Monday, March 13, 2023 1:58 PM
> TO: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> SUBJECT: [WSBAPT] social security question
>
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>    Listmates, Have a retired client who adopted a grandchild. Client  
> is retired on social security, so social security sends separate  
> check for adopted dependent. Client has kept the grandchild’s SS  
> money separate and would like to put in trust for college, to buy a  
> house, etc. Grandchild is nearing 18 years of age. Is client  
> permitted to put SS money in trust with conditions for distribution  
> that extend beyond age 18? Or is this the child’s money, period, on  
> attaining age 18. Input appreciated - Shannon
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>        SHANNON R. JONES | ATTORNEY
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>        Campbell Barnett PLLC
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>        Direct:  253.848.3515
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>        Office: 253.848.3513| Fax: 253.845.4941
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>        317 South Meridian
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>        Puyallup, WA 98371
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>        shannonj at campbellbarnettlaw.com 
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>         
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>        _campbellbarnettlaw.com[2]_
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>        This transmission contains confidential attorney-client  
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Links:
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[1] http://www.seattle-silvalaw.com/
[2] https://campbellbarnettlaw.com/
  a
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