Kentucky saves federal benefits for children in state care

The cabinet checks whether each child receives or may qualify for earned federal benefits and applies for benefits when the child may qualify. This applies to every child in the cabinet’s care and custody, including possible survivor or dependent benefits. The cabinet applies for benefits under federal law. The first check is due within 60 days after a child enters care. The cabinet checks again each year for new eligibility.

If appointed as a child’s representative payee, the cabinet conserves the child’s benefits, reports on them, and reviews whether another qualified person or group could take over. These rules apply when the cabinet is appointed to manage a child’s earned federal benefits. If the child received benefits before entering care or the cabinet applies for benefits, the cabinet consults the child and the child’s attorney to identify an appropriate payee. The cabinet may apply to serve as payee only if no other suitable candidate is available. It cannot use the child’s benefits, savings, or assets to pay or repay the cabinet or state for the child’s care or services. The cabinet provides an accounting each year and reviews the payee role periodically.

The cabinet makes a savings plan that lets a child access part of conserved benefits after completing a readiness program and at least one milestone. Milestones include getting a driver’s license or state ID, finishing high school, starting further education or job training, or keeping verified employment for at least six consecutive months. The child must complete a cabinet-approved financial literacy or savings readiness program and at least one milestone. The cabinet sets reasonable payment amounts and thresholds and provides financial instruction and counseling to participating children.

When its care and custody ends, the cabinet releases any remaining conserved funds to the child or the person responsible for the child. This applies to any conserved funds remaining when the cabinet’s care and custody of the child ends. The child receives the funds if at least 18 or emancipated; otherwise, the person responsible for the child receives them. The release happens when the cabinet’s care and custody ends.