Informal Agreement

Informal Agreement

North Carolina Legal Options for Kinship Caregivers

With an informal agreement, the child is living with the kinship caregiver, but they have no authority or permission to make any decisions for the child, such as medical or educational. It is simply an agreement between the caregiver and the child’s parents.

Ms. Dew explains the difficulties of raising her grandchildren without having anything in writing from their parents giving her permission to make decisions, including dental care and moving the kids to a school closer to her house.

If I Have an Informal Agreement. . .

What Decisions Can I Make for the Child?

With an informal agreement, you do not have the authority to make medical decisions for the child. If you know the doctor and the doctor knows the family situation, they may overlook your lack of authority, especially for preventative and regular appointments. For more involved treatments and procedures, they are more likely to challenge your authority to grant permission.

Often, this is not discussed before the child comes to live with you and you and the child’s parents will need to work it out.

It depends on the school, but often you will need more authority to make educational decisions, such as agreeing to an Individual Education Plan (IEP) for the child.

Enrolling the Child in School

The child is protected by NC Law §115C-366 (a3)(1), Every Student Succeeds Act (ESSA), and McKinney-Vento Act. These laws protect the child’s educational needs and allow the child to either stay in their current school or transfer to your local district, depending on the best option for the child.

PDF: What to Know About School Enrollment

No, an informal agreement does not give you authority to decide who will care for the child if you die, or if something happens to you.

Tipsheet: Planning for the What-Ifs

What Financial Supports Are Available?

*The child’s parents are still legally responsible for financially supporting the child.

No. However, your family may qualify for public benefits through the Department of Social Services (DSS), such as food or energy assistance and Work First (TANF) payments.

No, the child welfare agency does not pay for childcare. However, childcare may be available as a public benefit in your county. Check with your county DSS office.

Find Your County’s DHHS Office

Yes, if the child qualifies to receive the benefit.

Programs for Grandfamilies & Kinship Families

Your family must qualify on your own. However, adding a child or children to the family may change your eligibility for public benefits.

NC DHHS Assistance Programs

The Temporary Assistance to Needy Families (TANF) program, known as Work First in NC, is designed to provide financial assistance to low-income families while also helping them become self-sufficient.

There are two types of grants under TANF for which kinship caregivers may be eligible:

  1. Child-only grants
  2. Family grants

Child-only Grants

Child-only TANF (Work First) grants are designed to consider the needs and income of only the children.

Since most children do not have an income, nearly all children cared for by a relative are eligible for child-only grants. Child-only TANF payments are considerably less than foster care monthly subsidies or adoption and guardianship assistance. Also, they only increase a small amount for each additional child.

Family Grants

The State considers the kinship caregiver’s income for family TANF (Work First) grants.

Since these grants are designed to address the needs of the children and their caregivers, these payments are generally larger than child-only grants. Note that people raising a child but not biologically related to the child (such as godparent, neighbor, friend, etc.) are not eligible to include the child when applying for family Work First payments.

Receiving TANF (Work First) Temporary Assistance for Needy Families (TANF) federal policy requires caregivers to assign their right to child support to the state, tribe, or territory to receive TANF grants.

This means kinship caregivers must cooperate with the state to seek child support from the parents. If you have a good reason not to want the child’s parent to pay child support, ask the TANF/Work First agency about the “good cause” exemption for this requirement.

Apply at your local DHHS Office

Social Security may pay benefits to grandchildren when the grandparent retires, becomes disabled, or dies if certain conditions are met.

To receive this benefit, your grandchild must have begun living with you before age 18 and received at least one-half of their support from you for a year before the grandparent becomes entitled to benefits. Check out the social security website link, ssa.gov for more details.

These benefits are not available for other kinship relationships, such as when an aunt is caring for a nephew.

Find Out More At ssa.gov

SSI provides monthly cash payments to help meet the basic needs of children who have a physical or mental disability or who are blind. If you care for a child or teenager with a disability and have limited income and savings or other resources, your child may be eligible for SSI.

Children under age 18 can get a Supplemental Security Income (SSI) cash payment if they meet Social Security’s definition of disability for children and there are limited income and resources in the household.

If the child receives SSI payments, you can contact the Social Service Administration and ask for the check to be mailed to your address once the child has moved in with you.

Find Out More At ssa.gov

Are There Any Additional Services Available?

No

(for example, daycare, transportation assistance to appointments, scheduling appointments, etc.)

No

Many children raised by kin are eligible for health insurance through Medicaid.

Often the child can remain on their parent’s health insurance policy. However, if you have private health insurance, you will need to check with the insurer to determine whether you can add the child to your policy.

Medicaid provides coverage for many healthcare expenses for low-income children and adults, including visits to the doctor, checkups, screenings, prescriptions, and hospitalization.

You can apply for Medicaid on behalf of the children living with you. Medicaid does not have open enrollment periods, so you can apply at any time of the year.

No, unless they qualify for a service unrelated to child welfare.

For support understanding FAFSA, visit gksnetwork.org.

Typically for children aged 17 and younger, you can claim the child as a dependent on your state and federal taxes if you have been caring for the child for more than half the tax year. However, you may need to have a conversation with the child’s parents to make sure that they are not claiming this credit.

Determine if you are eligible for the Federal or State Tax Credit:

Support for Grandparents Raising Grandchildren

Grandfamilies and the Child Tax Credit (CTC)

Advantages vs. Disadvantages of an Informal Agreement

Advantages

  • Nobody outside the family is involved, including child welfare.  
  • Provides a temporary fix for what is hoped to be a temporary problem. 

Disadvantages

  • The parents can change this arrangement anytime; it offers no protection from the parents removing the child when they want to. 
  • You have no authority to make decisions for the child, such as medical and educational, including enrolling the child in school.

Tips

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You are not alone. Fran Stroud, Grandparent Caregiver. Listen to their story.

NC Legal Options for Kinship Caregivers

Legal Options Quiz

Child Welfare Not Involved

Child Welfare Is Involved

Making the Decision

Finding an Attorney

Kinship Advisory Committee

Additional Resources

*Not Intended as Legal Advice