Child's Income and Assets 447-10-30-15

(Revised 5/15/07 ML #3087)

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Children's earned and unearned income and assets must be evaluated very closely. The basic principal is that the payment to the foster parents should be made by the state. If the child has income, or assets in excess of $10,000*, the County should use these funds to reimburse the state for the child's cost of care. The child may continue to be entitled to a State foster care payment, even if the child's countable assets exceed $10,000, as long as the County reimburses the State for the amount of the payment. This is only applicable to on-going foster care cases, in which the child’s assets have built up in access of the $10,000. For an initial foster care case, if the assets are over $10,000 there is no eligibility for foster care payment until spend down of assets has occurred.  

 

The steps involved in determining how to handle the child's income or excess assets are presented below. In all cases the payment to the foster home is made by the State.

  1. Does the child have countable income?
       

 

No:

Go to B.

 

Yes:

Yes: Is the child's income greater than the cost of the child's care?

 

 

Yes:

The County reimburses the State for the amount the State paid.  The excess income is put in an account for the child.

 

 

No:

The County reimburses the State with the child's entire income.  Go to B.

 

  1. Does the child have assets?
       

 

No:

Stop, no additional action needs to be taken.

 

Yes:

Are the child's assets greater than $10,000?

 

 

No:

Stop, no additional action needs to be taken.

 

 

Yes:

The funds from the child's account in excess of $10,000 must be used to reimburse the State for the child's cost of care.

 

Example:

  1. The child is in a Family Foster Home. His cost of care is $425. per month. His income is $500.

 

The State pays the foster parents $425. The County reimburses the State the full $425. The balance of the child's income -- $75. is placed in an account for the child.

 

The situation continues for two years. At the end of this two-year period, the child has $10,800 in his account. The State continues to make the payment to the foster parents even though there is more than $10,000 in the child's account, as long as the County continues to reimburse the State for the child's cost of care.

  1. The same child moves to a group home where his cost of care is $800. His income continues to be $500 per month. When the child is placed in the group home the amount in his account is $10,800.

The State pays the group home $800. The County reimburses the State with the child's income of $500, plus $300 from the child's account each month until the balance in the child's account is $10,000. That is, in each of the first two months the child is in this home the County will send $300 from his account. In the third month, the County will send $200 from this account. Beginning in the fourth month, the County will only send the child's income.

 

 

* Federal law change 12/14/1999