Tuesday, 26 November 2013

FAMILY BENEFITS (I): ECONOMIC BENEFIT FOR DEPENDENT CHILD OR MINOR IN FOSTER CARE



The application for family benefits is one of the issues on which our customers are more interested and because of the deep crisis that plagues us the number of families who use them have been increased in the past months, so in order to give answer to the big demand of information today we begin a series of articles with the purpose of informing you about the following family benefits and the necessary requirements to get them:





Family benefits are provided to cover the financial needs or extra expenses of certain people, caused by family responsibilities and the birth or adoption of children in certain cases.

These are non-contributory benefits, except for the "non-economic" benefit that offers protection at the contributory level only.

Economic Benefit for Dependent Child or Minor in Foster Care

It is an economic allocation for each dependent child or foster child of the beneficiary under the age of 18, or older if affected by a degree of disability greater than or equal to 65%.

The "dependent" children or foster children, who live with and depend financially on the beneficiary,  as long as they are under the age of 18, or older if affected by a degree of disability greater than or equal to 65%.

They are considered to be dependent, even if they have paid employment, as long as they continue living with the beneficiary and the income from their work does not exceed 100% of the SMI (legal minimum wage) in force at any given time, calculated on an annual basis.
The beneficiaries are:
·         The parents, adoptive parents or foster parents who fulfill the requirements.
·         Disabled children over the age of 18 who have not been legally disqualified and who retain the ability to work.
·    Orphans of both parents and adoptive parents under the age of 18 or with a degree of disability greater than or equal to 65%.
·         Children who are not orphans but have been abandoned by their parents or adoptive parents, as long as they are not in permanent or pre-adoptive foster care and they meet the age or disability requirements described in the previous point.

The requirements to get the benefits are:
·             Legally residing in Spain.
·         To have dependent children or foster children under the age of 18, or older with a degree of disability greater than or equal to 65% and be resident in Spain.
·           To not be entitled to the same types of benefits in any other social protection scheme.
·        To not receive  an annual Income of any kind over the set limits. No income limit is required for acknowledging the status of beneficiary due to having a dependant child or foster child with disabilities.

The amount of the economic allocation differs according to the age and degree of disability of the dependent child or foster child.

·    291.00 Euros annually (24.25 Euros monthly), when the recipient's earnings do not exceed the limit established of 11,376.66 Euros plus 15% for each dependent child or minor in foster care after the second child.
For large families, the limit will be 17,122.59 Euros when there are 3 dependent children, increasing by 2,773.39 Euros for each dependent child after and including the fourth child.
·         Smaller, variable amount, when the recipient's earnings exceed the maximum established in each case, but are less than the amount resulting from adding to this figure the product of multiplying the annual amount for the allocation per child or minor in foster care by the number of children dependent upon the recipient.
The annual amount of the allocation will be equal to the difference between the received earnings and the figure resulting from applying the formula in the previous paragraph.

This difference is distributed between the dependent children or foster children and the monthly payments for the benefit in each tax year.
The economic allocation that is initially acknowledged will be received, as long as changes do not occur in the family that causes the allocation to increase, decrease or terminate. All beneficiaries have the obligation to submit, to the INSS within a period of 30 days, any changes in the family situation that involve the start, modification or end of the entitlement to receive the economic allocation.

Denial/Termination:
·         Death of the child.
·         The child reaches 18 years of age (except in cases of disability).
·         The disability ceases to exist.
·    The child is no longer economically dependent (when the child's income is over 100% of the SMI).
·         The corresponding income limits are surpassed.




For further details do not hesitate in contact VP Advisers.

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