Important Financial Facts For Adopting An Adult In 2022
Adult adoptions have increased over the years for multiple reasons. Did you know that it is an effective way for many adults to secure an inheritance?
Unlike marriages, the financial stakes of adult adoption are relatively higher and somewhat challenging to reverse. Although, it is not unusual for trust fund beneficiaries to shift their funds to the voluntary person rather than steering it to their immediate family members such as siblings or other relatives.
Let’s look at the top 4 financial considerations related to adult adoptions. But first, let’s touch base on the basic law of adult adoption.
The Basic Law of Adult Adoption
It’s safe to say that adult adoption is still a strange idea to many people. Although not wholly uncommon, the procedures associated with adult adoption are still relatively easier than adopting a child.
The only mandate to consider is the adoptee’s consent - meaning that the adoptee’s best interest is the foremost requirement for adult adoption applications. The basic law of adult adoption does not require any such legal obligations. This is because, in the case of adult adoption, the adoptive parent does not have to commit to any “child support,” unlike child adoption.
Did you know that only one-third of the state follows an adult adoption rule where the adoptive parents have to be older than the adoptee, agewise? Some states strictly demand an age gap of a minimum of 15 years, while others are more lenient and only want to see proof of a particular age gap between the parent and adoptee. For further information, you can learn more about it here.
The Cost of Adopting a Child
The average cost of adopting a child in the US is generally around $800, which is significantly lower than adopting a child or an infant. However, you may have to consider adoption lawyer fees if they are involved in the proceedings. The fee structure depends on the state laws, but it can vary between $100 to $1500. If a step-parent wants to adopt, the fees may even be less than $100.
Remember that the adoptive parents have to consider paying attorney charges, which could be between $200 to $300 hourly. It is also not unusual for some attorneys to bill you a flat fee if the adoption proceedings are straightforward and uncomplicated.
The Impacts of Adopting a Child
One should consider that an adult adoption naturally confirms a parent-child relationship, which raises the issue of inheritances of assets and properties, like in the case of a natural child. Adult adoption also means the adoptee will have to cut ties with their biological family, meaning they are only legally allowed to claim an inheritance from their adoptive parents.
As mentioned earlier, the adoption proceedings are reliant on state adoption laws. Hence, it is highly recommended to consult adoption lawyers to seek counsel for both the adoptive parent and adoptee. It’s essential that both parties understand the ins and out and consider any potential ramifications.
1. The Right of Inheritance and Estate Planning
For instance, some adoptive parents may solely consider adopting an adult from an inheritance perspective. For example, let’s consider a scenario where the parents of two children have a trust fund. In this case, the assets and properties will be transferred to the children and their successors.
For not having a child, you’re losing out on the trust that would’ve been transferred to your child if you had one. So what do you do? You adopt an adult! And you have no children, but your sibling has a child who will naturally be a potential candidate to receive their share of assets. It could be a friend, your significant other, stepchildren, etc., who will be the next in line to receive inherited assets and funds.
2. The Impact of Adult Adoption Benefits
Let’s discuss if an adult’s existing benefits are affected by adult adoption in any way. So, firstly, you should know that adoptive parents don’t have a legal binding to offer “financial child support” to the adoptee. Well, that does not imply that the adoptive parents never provide financial support; they can if they want to, but they are not obligated by any state law, unlike child adoption. An adoptee can still apply for financial assistance from the state for scholarships, college funds, etc., regardless of the wealth of their adoptive parents.
You should check with the respective agencies and benefit providers to protect your adult benefits. Here’s a list of impacts for your information.
Medicaid –Adult adoption does not impact either party’s Medicaid eligibility.
Individual Status for Financial Aid- For an adoptee who is still a student (over 13 years of age), adult adoption will not impact their eligibility for independent status for financial aid, regardless of their adoptive parents' wealth or income.
Supplemental Security Income (SSI) - An adult who is already recieving supplemental security income will not be impacted after being adopted, regardless of their age or adoptive parent’s wealth.
Chafee Independent Living Program- For adoptees in foster care prior to the adoption proceedings, it should not impact their Chafee Independent Living Program eligibility until they reach the age of 21.
Education and Training Vouchers (ETV)- Adult adoption does not impact the eligibility for Education and Training Vouchers when pursuing a college degree or diploma certificate. ETV, however, should still be obtained before the adoptee turns 21, which in some cases can be extended to 23.
Conclusion
Adults with a history of being in foster care or who have never been fortunate to receive support and care from their biological families often consider to adopt. Or adults with no children or immediate family members also turn to adoption to extend their family, be it child adoption or adult adoption. For some, the only objective of adopting an adult is to build meaningful relationships and establish healthy adult attachments.
The financial impacts on adult adoptions are somewhat simpler than a minor adoption. Let us know about your state laws in the comment section.
