Budget related, anyone know about disability benefits?

[momof5boys]

I will probably post this on the disability board also, but I'm on here all the time. My husband apparently got approved for permament disability, I say apparently because we did not receive an approval letter, but payment was deposited into his bank account today, and I received checks for his 2 minor children.
My question is regarding the kids and their benefits. I can't find anything online regarding what those checks can be used for. It is back payment for the last 2 years and you can image how much money I spent on 2 kids in that time. I was told by a bank manager that they have to be placed in separate accounts in the kids names and we have to account for every cent we spend to prove it was spent for them?! I am in alot of debit due to the fact that my husband couldn't work, and I have been working 2-3 jobs over the past 3 years to make up for it.
My husband will be going to the social security office on Thursday when he gets home from visiting his father.
For the youngest child I don't mind putting alot aside for college, but for the 16yo he has made it quite clear that he will not go to college, heck I'll be lucky if I can get him through high school.
Anyone have experience with this? Or advice? It's too bad his stepson doesn't get payments because he is going to college, and his oldest son would like to go to college but doesn't want loans, but because he is 20yo he gets nothing either.
I certainly don't want the 16yo DSS to think he can just sit on his rump and collect money until he is 18. For that reason we are not telling any of the kids about the childrens benefits for now.
TIA, I really am thrilled he got approved, once we pay off the debt I plan on going down to ONE job!

 

[denecarter]

My first husband died when our daughter was 4 1/2. She (and I until she was 14) received social security survivors benefits. While not exactly the same as disability, I'm sure it is probably very similar.

Every year, I had to send in a report stating how much of the money I received on her behalf was spent, how much was saved, how it was saved, etc. I didn't have to specifically list what the money was spent on, just how much went to pay bills in general. So, car insurance, clothing, gasoline, groceries, whatever you spend money on for the kids would fall under that category. You only need separate accounts if you plan to save any of the money... and it really seemed as though "they" didn't want the money saved. "They" wanted it to be used for the child's current needs.

The money continues (or used to anyway) until the child is 18 or leaves high school... whichever comes later. Yes, it is unfortunate that college age children don't receive any benefits like they did when my father was a child. I think that's how I got so deep in debt so fast... I really got used to that $1000+ a month. Not only did I continue to live like she was still getting it, but DD started college and you know what that does to your budget. I had spent 10 years pre-paying her college tuition with her SS... but that didn't pay for books, dorms, etc.

Anyway, hopefully someone else can add to this or correct anything that has changed in the last 5 years.

 

[momof5boys]

Thanks for the reply. I did forget to mention that DSS will be getting death benefits for his mother who died in May. He will be getting alot of money a month, but really doesn't need anything, a car and car insurance are a bit of a way off, since he has proven that he is too immature yet to have that privaledge. I have strict rules that need to be followed before you get your license. So far only 1 kid has met those tasks by the time he was 16!
I have thought of 1 big item that I had looked into. The 3 oldest boys sleep in the basement(their choice, it is finished) but the basement was finished before they had codes for escape windows, so we only have small basement windows down there. It will cost $3000 to have a walk out window placed, and since it is in DSS's bedroom, I guess that would be a safety need for him?

 

[shaylahc1]

I wouldn't bother spending $3000 to put in a window. If your DSS is 16 that means he'll be an adult in 2 years. As long as the boys have some sort of escape route if a fire were to break out, I wouldn't sweat it. Save that money for college, or at the very least so he can get a jump start on life when he turns 18 (put down a deposit on an apartment, etc).

 

[Cindy B]

I am assuming you mean Social Security disability. I am a former Social Security employee that did a lot of disability claims (they actually were my favorite type of work, awarding the amount to the claimants)

According to Social Security law, yes the checks for the kids should be in a separate account. Unless the law changed since last year, the kids get the money until they are teenagers. (16 or 18 ) Now if one of your children is disabled, they can still be on a disabled number holders account -in this case your husband- after the cutoff date because they are also disabled. Then this "child" is considered an disabled adult child (DAC) and will continue to receive benefits. Of course check with your Social security office, but that was the procedure last year.

Now if I recall corrrectly, the children will only get the disability child benefits until a certain age (I think 18). In some cases which depends on Social Security ruling on the date of disability onset, some kids only get the "retro" pay and then don't get anymore . And remember it is only the number holders kids, not or any one else. According to law, it should only be the "bloodline" of the disabled individual.

Yes, you will also not need detailed accounts for spending the money. Like another pp said, just basically spend it for current needs or save for college. You may wind up getting form mailed asking about the money (survivors got the letter, but I don't know if disability people do) and just answer it and mail it back.

 

[Zydebearsmom]

I wouldn't bother spending $3000 to put in a window. If your DSS is 16 that means he'll be an adult in 2 years. As long as the boys have some sort of escape route if a fire were to break out, I wouldn't sweat it. Save that money for college, or at the very least so he can get a jump start on life when he turns 18 (put down a deposit on an apartment, etc).

Agree with the above poster. My aunt died when my cousin was 14. She received benefit until she was 18. Her father spent the money on bills and other misc. things. My cousin is now 21 and has nothing not even a place to live. I wish her father would have put that money up for her so she would have been able to get a good start on life.

 

[Judique]

Agree with the above poster. My aunt died when my cousin was 14. She received benefit until she was 18. Her father spent the money on bills and other misc. things. My cousin is now 21 and has nothing not even a place to live. I wish her father would have put that money up for her so she would have been able to get a good start on life.

He did not have to. The money was to raise the child.

It would have been good of him as a parent to start a college fund for her.

But the law does not require any parent to do that.

 

[kellydizfan]

My DH has received SSD for the last 6 years. We now have a DD17, DD14, DS11. They ask if we save it or spend it on living expenses. That is all. Never have had a problem. He doesn't think it is every year we get this form. He hasn't had to show proof of what we spend the money on yet.

 

[Zydebearsmom]

He did not have to. The money was to raise the child.

It would have been good of him as a parent to start a college fund for her.

But the law does not require any parent to do that.

I did not say he had to, just would have been nice for the child if he would have.

 

[Frannie115]

My DH has received SSD for the last 6 years. We now have a DD17, DD14, DS11. They ask if we save it or spend it on living expenses. That is all. Never have had a problem. He doesn't think it is every year we get this form. He hasn't had to show proof of what we spend the money on yet.

Same here. You just fill out the form with how much was spent and saved. When my DD turned 18, her amount just transferred over to my DS. So we still get the same amount but all in my son's name. When DS turns 18, I believe that check goes away.

 

[Leajess99]

Thanks for the reply. I did forget to mention that DSS will be getting death benefits for his mother who died in May. He will be getting alot of money a month, but really doesn't need anything, a car and car insurance are a bit of a way off, since he has proven that he is too immature yet to have that privaledge. I have strict rules that need to be followed before you get your license. So far only 1 kid has met those tasks by the time he was 16!
I have thought of 1 big item that I had looked into. The 3 oldest boys sleep in the basement(their choice, it is finished) but the basement was finished before they had codes for escape windows, so we only have small basement windows down there. It will cost $3000 to have a walk out window placed, and since it is in DSS's bedroom, I guess that would be a safety need for him?

Just so you are aware a portion of the money can be used towards the rent/mortgage, vehicle costs, food costs, etc. My mom had to account for what was spent when we were recieving the death benefits after my father died when I was 9.

When the check started coming in my name I signed it over to my mom but she never told me at the time she was putting it in a separate account for me. I received it afyer I joined the Army since I made the choice to serve over going to college at the time. I was not ready to be in school any longer at that time.

 

[Tinker'n'Fun]

I receive SSD and my children receive/received benefits also. At the end of my year (based on my first check date) I am sent a letter to verify that the amount they state is correct. I answer yes/no. Then they ask if the money was used for the child yes/no. They ask if I put any of the money into savings yes/no. If yes, you must specifically state the account, the name on the account and the exact amount placed in the account.

I used their checks to keep all the bills in check and their schooling paid for (private). I never placed any of it in savings. Checks end when the child turns 18. You receive your check a month before. So on January 3rd. I received my December check. Since DD turned 18 in December, her last check was received in January.

I have never been asked to verify what I purchased, only what I saved or bonds etc. Hope this helps.

 

[SandrA9810]

My mom got SSD for my brother. She just had to list food, clothing, shelter as to what she spent the money on. They don't ask for specifics, just general stuff to make sure the kids are adequately cared for.

 

[tink2dw]

i was a stay at home mom. My disablity is less than $700.00 a month. That is all I have gotten while I have gotten it.

it has paid rent and water. And some Electric.

But now the lease is up, rent is going up!! I won't be able to afford this!! I'm scared.

And the goverment wants to balance the budget by lowering my disablity check. What will happen then?

 

[momof5boys]

Thank you all for your replies! I am still alittle confused as to what the bank said, that we had to have a separate account to deposit the checks in, it does say on the check "my husbands name" FOR " my childs name" I figured he could deposit them into his account but put any savings into the childrens accounts that we already have? We did get the award letter yesterday and there was a booklet in it but it answers nothing about what I have asked here.
My poor husband told me yest. that maybe it's different from state to state? I had to remind him that social security is federal! I swear his meds are killing brain cells sometimes!
All I know is I will be debt free within the month! My husband almost died when I told him how much debt I need to pay off, how he thought we were surviving when my 2nd job I had last year wasn't giving me any hours I don't know?!(I have since gotten an other job with guaranteed hours,) I think I will keep my 2nd job for a few months,to pay for a cruise that we have been promising the kids, I don't want to use any of the disability money toward vacation. I actually want some money in a savings account! I'm tired of living paycheck to paycheck or having to skip bills because I can't pay them that month.

 

[Poohforyou]

I'd definitely check out what the bank manager said about accounting for every penny. I wouldn't expect this person to actually know the policy.

My dad died when I was 8 and my brothers and I received SS and Veterans benefits which my mom used as she saw fit. It was not deposited into a seperate account.

It never occured to me that she should have put that money aside for when I was grown. She used it to pay for the things my dad's salary would have covered had he lived. Things like a roof over our heads, braces, private school, college, weddings etc.

 

[DOREEN1779]

The benefits you receive for your children must be spent on your children and not saved. If you make an appointment with your local SS Office, they will go over everything. The money can be applied to anything relating to the care of your child. Percentage of mortgage, food, clothing, or even an air conditioner. Every year you will get a representatives payee report you need to fill out. On that report it will ask you if you saved anything, spend it all. The money is not meant as a savings account. That is why Social Security recommends you direct deposit the money into a household checking account.

Doreen

 

[PatsMom]

The benefits you receive for your children must be spent on your children and not saved. If you make an appointment with your local SS Office, they will go over everything. The money can be applied to anything relating to the care of your child. Percentage of mortgage, food, clothing, or even an air conditioner. Every year you will get a representatives payee report you need to fill out. On that report it will ask you if you saved anything, spend it all. The money is not meant as a savings account. That is why Social Security recommends you direct deposit the money into a household checking account.

Doreen

I have to disagree with this unless the rules are different for disability payments than they are for retirement benefits. My daughter received two years worth of social security retirement benefits because her father was drawing retirement benefits. The rules were fairly simple - the money had to be spent on her OR saved in an account in her name. So you can save the money. I did my husband's annual reports saying that 100% of the money was saved in a 529 plan for college. I had to report the account number, balance in the account, etc.

I think the annual accounting is where the bank manager is getting the idea that you need separate accounts. If you are going to spend the money on the child, then the check can go into a household account and when you do your accounting you just say that it was all spent on housing, food, recreation, etc. But if you are going to save it you have to be able to identify the account and show that it is clearly for the beneficiary.

 

[Tinker'n'Fun]

Checks that are direct deposited, must be deposited into an account with only your childs name on it. (or at least they must be the primary). Since this rule was always a problem with the bank and SSD (they didn't agree) we chose to get the checks mailed to us for the childrens benefits. I just sign my name on the back (it is actually in your name with the child as the secondary) and deposit into my bank account. I can also cash them if I want.

The problem is only with direct deposit. Hope this helps.

 

[DOREEN1779]

If the money is saved, it needs to be put into a seperate account for each individual child. If the money is spent in full each month, you only need to keep a record of how it is spent. The child collecting those benefits also cannot work more then a certain amount each month ( includes a part time job, modeling, child actors ect....) A disability benefit is different from a retirement benefit and the rules are a bit different. The only one who makes the decision on accounting, ect.... is the representatives payee. That person our in some cases, a company, is the person who makes all the decisions. If you go to your nearest SS office( I recommend calling and making an appointment first) they will go over everything. Having it direct deposited is quicker, safer, and is easily trackable. You can always transfer as you see fit. Every situation is different, there are people at Social Security for just this purpose, talk to them.
Doreen