Question on FAFSA, Independent Student Status and incompenent parent

<p>Okay, I'm trying to plan ahead and was wondering if anyone had dealt with anything like this and had some advice as to the best plan to have? Youngest son will be a high school senior this fall, so college is in the near future. I have an older daughter who will be starting her senior year in college this fall, she may or may not graduate in May, so I don't know if I'll have one or two in college. My husband/their father is disabled, has dementia and has been declared unable to live on his own or manage finances. Currently I serve as his representative payee and hold financial and medical POA. Obviously the only income coming in on the part of the father is Social Security Disability. If I pass away before my husband (heaven forbid and the kids don't even like me to mention it, but I try to consider everything) my husband's sister has agreed to let him live with her and tend to him as long as it's possible (w/dementia it can go downhill really fast, or it can stay stable for awhile), or (as neither child has the financial resources they would need) if that were not possible, husband would have to be institutionalized. I try to leave instructions for my kids for anything they might need to know in case of my absence, so want to talk to my daughter about her brother's college stuff. If an under 24 child has one deceased parent and one that is incompetent, are they then considered independent for the purpose of financial aid. Either my husband's sister or the institution would become husband's payee for Social Security, he has to have one, so husband's finances and possibly financial records would be out of kid's control and reach. I have not filed for guardianship of husband (for several reasons, including his last piece of pride) but could if it was necessary and there is no doubt it would be approved. But as far as I know for financial aid purposes all that would mean, is that husband's sister or institution would become guardian, leaving the money and records even more out of kid's reach. I think, (though this is just judging by what I've read on CC) that it would be more to my kid's advantage to NOT be independent for the sake of financial aid, but is this possible? The only major asset that would be passed to kids through inheritance from me, would be the house and land (this was gifted so is not community property and is up to me to dispose of) which I planned to set up to stay as is, until both kids are out of school and settled so they will have a home for school holidays and summer, and then disposed of how they prefer. We use a state provided elder attorney, but he's had little to no experience w/clients who still have minor children, we are very much in the minority there, we are a little older than average parents and my husband was stricken much earlier than your typical dementia/Alzheimer patient, so I may have to seek outside advice, though finances are very limited. Has anyone had any experience along this line and any tips or suggestions they might share. I know the odds are slim, but it could happen and we need a plan.
Thanks</p>

<p>If Dad’s only income was SS disability then as his dependent your kids would probably be eligible for the automatic 0 EFC. To be eligible for the automatic 0 EFC the parent’s income must be less than $30,000 and he must be eligible to file a 1040a or 1040 ez return or not have to file at all (also can qualify by meeting the income limit and some other requirements - eligible for means tested benefits, parent is a dislocated worker etc). With the auto 0 EFC the student’s own income and assets will not be considered at all in determining the EFC so that is probably better than being independent.</p>

<p>Independent status would probably require a professional judgement dependency override as there is no question in the dependency questions that addresses your situation. But if the income is low staying dependent may be the better option.</p>

<p>Good luck.</p>

<p>First of all, I know that this is a very difficult time for you. I do hope that you are getting some help so that you are able to have time to yourself once in awhile.</p>

<p>You are smart to plan ahead for the worst case scenario. If something happened to you, your kids could file for a dependency override & most likely would be granted independent status under the circumstances. However, as swimcatsmom pointed out, it might be to their benefit to remain dependent, using their dad’s income information. If they have any money at all, they will be expected to use it (or borrow against assets) to pay for school. The parent income is much better-protected, so using their dad’s info is very likely the more beneficial avenue (at least under current financial aid formulas).</p>

<p>To the OP…My thoughts are with you. Agreed, good to plan ahead given the circumstances.</p>

<p>To others who have replied…this information re: $0 EFC and such is applicable to the FAFSA, but what happens if one of these students applies to a Profile school? There is a section on the Profile to put other information…seems like the medical/care issues this family is facing would be important to note there.</p>

<p>Yes it would be important to address the issue on profile if a profile school is involved for the upcoming college student. The original question just asked about FAFSA so presumably the current college student is not at a profile school.</p>

<p>I should note that I’m an attorney but am not currently practicing law–and everything I know about these issues is based on personal experience with the legal issues of a disabled relative.</p>

<p>I am proud of you for planning ahead!</p>

<p>Perhaps what you really need here is not an elder law attorney but a disability law attorney. Sometimes they can be one and the same, but the fact that your current attorney hasn’t dealt with minor children much makes me wonder whether he doesn’t practice disability law. Attorneys who deal with disability law frequently have to address issues regarding minor children. They also need to know about financial aid, because it is frequently the case that a family has one disabled child and other children who plan to attend college. Even with limited family income, it might truly be worthwhile to consult an attorney who is familiar with your issues. Here is a link to the American Bar Association’s directory of disability lawyers: [Commission</a> on Mental and Physical Disability Law](<a href=“http://www.abanet.org/scripts/disability/displaySearch.jsp]Commission”>http://www.abanet.org/scripts/disability/displaySearch.jsp).</p>

<p>Do you have a current will and current guardianship papers for your younger son, if he isn’t yet 18?</p>

<p>Well, that’s what I was thinking that it might benefit them to remain dependents, however for some reason I didn’t even consider the Profile. Oldest is not currently at a profile school, she applied to several private schools but for some reason only one needed the Profile, the others used the FAFSA, of course this was a few years ago, but son will be applying to some schools I know require the Profile. You’re right, the profile needs different or expanded information so I guess I need to throw that into consideration too. So if he stays as a dependent, then I’ll need to make sure he, sister or someone can get access to dad’s records for information. </p>

<p>Yes, we do have a current will and guardianship papers for our youngest so we’re set there, but I’ll need to update everything once he’s 18 and we have family, other than his sister who would help parent type stuff, but since they either have very young children or have children who are long out of college I’m trying to make sure there is a plan to follow, when it comes to FAFSA, pins, Profile and all that. Just one more thing on my quite long list of things that need tending to, seems I take care of one thing and two more pop up I’ve not considered.</p>