If my child lives in an ADU on my property, does that affect their public benefits?

An increasingly common trend is for parents to build an accessory dwelling unit (ADU) on their property to house their child in adulthood. This can provide the individual with a greater degree of independence while still allowing them to stay close to home and family. However, Transition Consultant Joanna Kent says that there are some considerations to think through before deciding if this option is right for your family:

• Does your child need 24/7 supervision? Do they have IHSS protective supervision hours? These questions can help with the level of expectations of care that your child would need to live independently. If your child has protective supervision, they cannot actually live without another roommate, at a minimum, or they need to show that they can keep 24-hour staffing and back-up supports if anything were to happen so that they are never left alone.

• Are you your child's live-in provider for IHSS? If your child lives in an ADU, this means they do not live at home anymore. You would then not be considered a live-in provider, which can have implications for your IHSS income being subject to tax.

• How does your child feel about living in an ADU? Some adult children do not actually stay in them full-time because they are so close to home; they don't understand that they now have their own space and end up still sleeping in their childhood bedroom.

• Do you charge your child rent? If your child is receives SSI, you will need to have a lease/contract, and there will be implications for you on your taxes, so speak with a tax expert.

• Who owns the ADU? Is it placed into a trust so that your child does not inherit it and potentially put their benefits at risk?

• Will the ADU on your property have its own street address? Whether this is required for a separate dwelling depends on the rules in the area you live. This could have tax implications and create complications if/when you sell the property.

Speaking with a lawyer, an accountant, and potentially a realtor about all these concerns will help parents decide whether this is a feasible option.

For more information on housing options for adults with disabilities, see our full article Supports for Independent Living.