Adoption financing may be your path to help grow your family
Adapted from an article first appearing in Adoption Today Magazine.
Once you’ve made the decision to embark on the adoption path, it remains a heartfelt investment of emotion, time and money. And while you’re focused on the outcome of adding to your family (and rightly so!), it’s the financial component that’s going to help make it all possible. So let’s examine some of your options and costs.
The non-profit organization Creating a Family reports that it can be a relatively quick process to adopt individual children or siblings out of the foster-care system. While the process varies among states, qualifications are not necessarily limited by marital status, age, income or sexual orientation. Many foster care adoptions can also be subsidized with cash, healthcare benefits and even college tuition assistance.
Grants are available through a variety of organizations such as Help Us Adopt, Dave Thomas Foundation for Adoption and National Adoption Foundation. Applications are usually brief and can be completed online. Funds are awarded based on the selection criteria of each organization.
Costs for domestic private adoptions range between $15,000 and $40,000. International adoptions average $30,000 — $35,000, but can reach above $60,000. How are you going to pay for this? Leveraging savings is an option, as is tapping investments. Liquidating a 401(k) account, taking savings earmarked for a mortgage, or selling high-performing assets can have long-term impacts and/or tax implications. If you decide to go this route, it’s important to assess the associated costs by consulting a financial or tax advisor.
If you have good credit, another option may be a personal loan. LightStream, a division of SunTrust Bank, provides unsecured loans up to $100,000 for adoptions, at fixed, competitive rates and with no fees. Funds can be used for all expenses associated with an adoption such as home evaluation costs, legal fees, medical expenses, even travel. And since the loan process is completely online, applications are easy to submit, responses are provided quickly, and funds are deposited directly into your bank account.Used responsibly, credit cards allow families to cover some, or even all, adoption costs. Many companies also offer rewards programs that deliver rebates or other incentives. Be sure to understand your interest rates, and budget to make timely monthly payments. Excessive revolving debt can be expensive and negatively impact your credit scores.
However you finance an adoption, each family creates a unique love story. The outcome of bringing a child—or multiple children—into a family has an inestimable value. As said by actress Nicole Kidman “Somehow destiny comes into play. These children end up with you and you end up with them. It’s something quite magical.”*
This content is general in nature and does not constitute legal or tax advice. You are encouraged to consult with competent legal or tax professionals, based on your specific circumstances.
*From America Adopts, “25 Motivational Adoption Quotations and Poems for Adopting Families”