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  1. #1
    Join Date
    Sep 2010
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    3

    Default Is It Okay to Save Survivor Benefits for My Children

    I have two young school age children who are recieving survivor's benefits from their father (who tragically passed away in his mid thirties). I have to fill out a report to SSA once a year stating how much I have saved for the children in a separate account. I thought this was a fine idea, as I have heard first hand from an adult friend how she wished her mother would have saved some money for them (simiar circumstances).

    Now, I have learned today that once the kids turn 18, SSA will send me a letter, telling me to send all of that "savings" back to them, and they will cut my child a check. I have that money in a college savings (529) account, and a regular savings account. I am worried I will owe taxes on the 529, or that my children will not use the money as I would prefer them to do (i.e. college dorm, books, food, car vs beer, $200 jeans, bar tabs for friends).

    What should I do???!! Thank you for your help

  2. #2
    Join Date
    Apr 2009
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    Somewhere near Canada
    Posts
    35,894

    Default Re: Is It Okay to Save Survivor Benefits for My Children

    Quote Quoting lovingmomma
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    anyone?????


    Please have a bit of patience.

    The responders are ALL volunteers, most with jobs, families and commitments of their own.

    You only posted 2 hours ago...if you'd prefer something faster, there are several services available where you can pay to have instant access to an attorney.

  3. #3
    Join Date
    Sep 2010
    Posts
    3

    Default Re: Is It Okay to Save Survivor Benefits for My Children

    sorry about that. I should have just bumped the thread. I will be patient and go give my kids a bath! Thank you for any advice.

    I have searched the internet, and SSA did not really specify. I am not sure if the SS help websites are scams because they charge. My atty costs $275, and even a quick answer over the phone is half that. I truly truly appreciate any advice, especially if you are older and wiser! I need your wisdom!

  4. #4

    Default Re: Is It Okay to Save Survivor Benefits for My Children

    From a 'survivor' in the same circumstance.... if you give this to the kids, you have no control on how it will be spent. Once turned over to them, it's no holds barred. However, in a trust, with a specified age, it is held and earning interest until they reach that age. Talk to a local atty or financial advisor to get you started. They will have the answers that you're looking for.

  5. #5
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: Is It Okay to Save Survivor Benefits for My Children

    Quote Quoting lovingmomma
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    I should have just bumped the thread.
    That's a good way to get your whole thread deleted. Don't do that if you want help.

    As Doggie said, VOLUNTEERS. Wait until someone who knows the answer can help you.

  6. #6
    Join Date
    Jan 2009
    Location
    California
    Posts
    1,045

    Default Re: Is It Okay to Save Survivor Benefits for My Children

    Quote Quoting lovingmomma
    View Post
    I have two young school age children who are recieving survivor's benefits from their father (who tragically passed away in his mid thirties). I have to fill out a report to SSA once a year stating how much I have saved for the children in a separate account. I thought this was a fine idea, as I have heard first hand from an adult friend how she wished her mother would have saved some money for them (simiar circumstances).

    Now, I have learned today that once the kids turn 18, SSA will send me a letter, telling me to send all of that "savings" back to them, and they will cut my child a check. I have that money in a college savings (529) account, and a regular savings account. I am worried I will owe taxes on the 529, or that my children will not use the money as I would prefer them to do (i.e. college dorm, books, food, car vs beer, $200 jeans, bar tabs for friends).

    What should I do???!! Thank you for your help
    https://secure.ssa.gov/apps10/poms.nsf/lnx/0200603000

    As I understand it, a 529 plan is a method of saving your own money toward your child's college and that you can take that money back whenever you choose to do so because it belongs to you (but I am not an accountant). So it is really not appropriate because the money doesn't belong to you, it belongs to the children. If you have it in a regular savings, is the account interest reported under your or their SSN? Should be theirs.

    So once your children turn 18, if they choose to not go to college, what is your plan? Perhaps you should change what you do with the survivor benefits: spend those on today's needs and save your own money for their college so that you can control it and decide what to do with it.

  7. #7
    Join Date
    Sep 2010
    Posts
    3

    Default Re: Is It Okay to Save Survivor Benefits for My Children

    Quote Quoting Janke
    View Post
    https://secure.ssa.gov/apps10/poms.nsf/lnx/0200603000

    As I understand it, a 529 plan is a method of saving your own money toward your child's college and that you can take that money back whenever you choose to do so because it belongs to you (but I am not an accountant). So it is really not appropriate because the money doesn't belong to you, it belongs to the children. If you have it in a regular savings, is the account interest reported under your or their SSN? Should be theirs.

    So once your children turn 18, if they choose to not go to college, what is your plan? Perhaps you should change what you do with the survivor benefits: spend those on today's needs and save your own money for their college so that you can control it and decide what to do with it.
    Thank you so much! The link was great...even the person at the soc sec office could not find that link. It seems so silly to have to return money so they can reissue it to a 18yr old. However, I understand that there are not the best circumstances out there for watching over the money. As for the %@(, if obe child decides not to use it, it can be transferred to the other child, a grandchild, even to me, As long as it is used for education, the interest on the acct is tax free. I am so grateful to have the survivir benefits. Even in his death, my sweet husband has provided a good life and future for me and the kids. I hope he will be proud of me for how I am "spending his money", and "saving mine" for the children's college, first car, wedding, etc. I will give to them all that he would have given to them, and they will never be destitute because he loved them, and me. I even learned that if i wanted to quit working (I don't!), I could get an extra $500 a month (max family allowance). I would rather work, of course. Nice to know he is still caring for us. Here's to all the daddy's out there!

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