When a client files for Social Security benefits while listing a minor child as a dependent, there is an opportunity to receive additional benefits. The child can be biological, adopted, or a stepchild in the household. Child benefits stop once the child reaches age 18.
Within a family, a dependent child can receive up to half of the parent’s PIA at full retirement age. When a client passes away with a minor dependent child in the plan, the child is eligible for a survivor benefit up to 75% of the deceased parent’s PIA. This can occur even prior to the client filing for benefits.
Condition to receive Child Benefit | Child Benefit Amount |
|---|---|
Client receives Retirement Benefit, and has a child under age 18 | 50% of client PIA |
Client receives Survivor Benefit, and has a child under age 18 | 75% of deceased spouse's PIA |
In RightCapital, child benefits are automatically calculated and applied when there is a minor, dependent child included in the plan. To add a child as a participant in the plan, navigate to the Profile > Family tab (or Step 1 of the initial data entry) and click Add Participant > Child. Within the Child card, make sure ‘Yes’ is selected in the 'Dependent?' dropdown (this is the default option):
To eliminate Child benefits generated by minor children within the household, select ‘No’ from the 'Dependent?' dropdown. Grandchildren and Other family members cannot be claimed as dependents.
Child benefits can be tracked within the Retirement > Cash Flows > Summary tab, by clicking into the Income Inflows > Social Security column:
