Can this be reported as fraud?

My niece became pregnant while a senior in high school. Baby boy was adopted by my father in-law for insurance. (he's retired Army). Niece had previously been adopted by her grandma for the same reason.. insurance. Because my father in-law was a senior citizen when he adopted his great grandson, he received extra social security benefits. Understandable even though the great grandson lived in the same house as his mother. My niece is now a grown woman, probably going on 31, married to a guy in the Coast Guard and they also have a daughter between them. Her son is living with her yet she continues to get money from her grandpa from his social security checks. It seems that those benefits should have stopped when she moved out with her son and got married, yet she gets a check for $500 a month sent to her from her grandpa. My daughter told me that she bragged about the numerous Louis Vuitton purses she has and that she didn't pay for any of them. My father in-law now has terminal cancer and probably has less than 6 months to live. Should this be reported to social security so the payments can stop? It literally makes me sick that she has been receiving $6,000 a year, tax free, for her son who is living with her. I have no problems reporting someone who I believe is receiving fraudulent benefits, even if they are family. My husband and I thought this had been taken care of, but he recently found out she was still receiving checks and supports me reporting this if it is fraud.

curious cat2014-06-14T10:25:59Z

Your father in law is the one possibly receiving fraudulent benefits not her. There is nothing illegal about accepting $500 a month from ones father. The reality is you don't really know what's going on. Best to just myob.

Hrēodbēorð2014-06-14T09:44:54Z

Whether or not your father-in-law has a right to receive the extra benefits since his adopted daughter moved out is debatable, but any money your niece now receives from him is not tax free. Report her to the IRS for tax evasion if you want to report anyone, and the government will work it all out. But by the time it does, the old man will likely be dead from cancer, and if anyone has to repay the money, it will be your niece.

Anonymous2014-06-14T09:32:50Z

It's a gray area. He legally adopted the child and the child lived in his household. You cannot really prove that they intended to defraud anyone in the adoption. Legitimately your niece was probably too young and incapable of financially raising the child. I don't find it at all unusual for a parent or grandparent to agree to adopt their own grandchild to keep it in the family. I would do it for my own child. If you had a relative that you took in because the parent was no longer able to care for them - that child would also be eligible for benefits from his/her parents - legally this child is still the adopted child of the grandparent/father regardless of who currently has guardianship and therefore is entitled to benefits until he turns 18 and I think you should leave it at that.

Michael E2014-06-14T09:26:07Z

How will reporting this help your father-in-law's cancer?