Social Security Benefits for a Child with Autism When Parents Retire or Pass Away

I have a potential client who has a 21-year-old with autism and will never be able to work. The question is if one or both parents were to die does any of their benefit go to pay the cost of his care? They both are 60 years old and have saved a good bit of money to be able to retire but they are concerned when they decide to turn on SS if any of that benefit cares for the child. 

If the parents of a 21-year-old child with autism pass away, or if they file for Social Security benefits, the child could receive Social Security benefits based on their work records. Here’s how it works:

1. Disability Determination for the Child:

   • First, it’s important to establish that the child is recognized as disabled by the Social Security Administration (SSA). The key factor here is that the child’s disability must have occurred before the age of 22. If the child is determined to be disabled before this age, they will be eligible for benefits based on the parents’ Social Security earnings records.

2. Benefit Amount While Parents Are Alive:

   • If one or both parents file for Social Security retirement benefits, the child could receive a dependent’s benefit. This benefit would be equal to 50% of the higher earner’s Primary Insurance Amount (PIA). This would apply as long as the parent is receiving Social Security benefits.

3. Benefit Amount After the Death of a Parent:

   • If a parent passes away, the child’s benefit increases to 75% of the deceased parent’s PIA. If both parents pass away, the child would be eligible to receive survivor benefits based on each parent’s record, although the family maximum limit may apply.

4. Impact on Child's Care:

   • The benefits received by the child can indeed be used for their care. These benefits are intended to help cover the living expenses and care needs of the disabled child. Typically, the benefits are paid to the parent or guardian as a representative payee, who then uses the funds to support the child’s needs.

If the child is determined to be disabled before the age of 22, they will be eligible for benefits based on their parents' Social Security earnings records. These benefits will provide financial support for the child’s care both while the parents are alive and after they pass away. The benefits will equal 50% of the higher earner’s PIA while the parents are alive and 75% if the parent passes away. The parents can rest assured that this system is designed to help ensure the child’s care is financially supported.