Continuing and Maximizing Support for a Disabled Child

If your child has a disability, it is important to be aware of all possible services and support available to maximize their quality of life. Caring for a child with disabilities often involves substantial expenses—including healthcare, specialized education, home modifications, and adaptive equipment—but numerous federal and state programs exist to help families manage these costs.

Understanding the connections between child support, health insurance, and available assistance programs is crucial. Navigating the interplay among these resources ensures your child receives comprehensive care and that your family can access the full range of available benefits.

Generally, emancipation occurs when a child reaches the age of majority, or eighteen (18) years old. However, if your child is disabled, the presumption of emancipation at age 18 can be rebutted. Accordingly, child support can continue past the age of majority.

Supplemental Security Income

A disabled child who turns 18 may qualify for Supplemental Security Income (SSI), a federal program for people with disabilities and limited income and resources. In New Jersey, getting SSI automatically qualifies someone for Medicaid, which is needed to access some available services for people with developmental disabilities.

New Jersey Division of Developmental Disabilities

When a disabled person finishes public school (usually at 21), the New Jersey Division of Developmental Disabilities (DDD) provides adult services like day programs, housing, and job support, funded by Medicaid waiver programs. As this program is funded through Medicaid waives, qualifying for SSI and Medicaid is all the more important.

SSI eligibility for adults is based on the individual’s own income and resources, not their parents’. Child support paid to an adult child is considered unearned income to the child. Since child support is considered unearned income, child support can reduce or even disqualify a disabled child from SSI and Medicaid eligibility, as those programs take into account the child’s income. If the child does not qualify for Medicaid, the child cannot receive DDD services.

Special Needs Trust

Fortunately, there is a method available to continue receipt of child support while also protecting eligibility – a Special Needs Trust. Specifically, child support can be paid directly into a self-settled special needs trust, which is managed for the benefit of the disabled child. Money in this trust is not counted as “income” for SSI and Medicaid purposes, as long as the trust is set up correctly and the payment is irrevocable. Therefore, by setting up a Special Needs Trust, your child can continue to receive child support, while also receiving additional funds from SSI, as well as Medicaid coverage and potentially DDD services.

Obermayer family law attorneys are experienced in handling all aspects of child support cases, including for families caring for disabled children. For more information, set up a consultation with an Obermayer attorney today.

The information contained in this publication should not be construed as legal advice, is not a substitute for legal counsel, and should not be relied on as such. For legal advice or answers to specific questions, please contact one of our attorneys.