Q. My husband and I want to set up an education savings account for our 6-month-old grandson, but he doesn't have a Social Security number. Our daughter and son-in-law are working in a foreign country, and that is where he was born. They've ask me to find out if they can obtain a Social Security number for their son before they return to the States in two years, and I haven't a clue; please help. Before reviewing the Social Security number requirements, I suggest you reconsider the type of education savings account you plan to fund. Unless Congress acts to extend the attractive benefits of the Coverdell Education Savings Accounts (ESAs) they may expire at the end of 2012. Because of this possibility, some providers will no longer accept new assets nor open new ESAs. If there is no extension, contributions for a beneficiary will be reduced from $2,000 to $500, expenses for kindergarten through the 12th grade may no longer be covered, and a contribution to both a 529 plan and ESAs for the same beneficiary will no longer be allowed in the same year. If the goal is to help with college, a 529 plan offers tax-advantaged savings and - depending upon the state in which you live - it may provide tax incentives for contributions. North Carolina's plan offers a tax deduction for contributions up to $5,000 and can be used to pay qualified education expenses at colleges and universities throughout the United States ( cfnc.org).
A passport is more important than a Social Security number so they can bring the little guy back with them! If they haven't done so already, your grandchild's parents should file an Application for Consular Report of Birth Abroad of a Citizen of the United States of America (CRBA). Search for the website of the American Embassy in the foreign country in which they are working. Under "U.S. Citizen Services" find "Report Birth Abroad" to find the requirements for the CRBA. Appling for a passport should be done in conjunction with the CRBA. The child and the parents will need to go to the embassy/consulate at the time of application. In general they will need to make an appointment and have all required documentation with them, which will include many originals. They will need the child's original hospital letter/birth record, their original passports and official marriage certificate. They may also need three identical passport photos of your grandson and two each for the mother and father. Proof of physical presence in the United States before the child's birth such as W2s, transcripts or tax returns will be required.
Once the report of birth and passport are obtained, they can apply for a Social Security Card on behalf of your grandson. They would download and complete from SS-5-FS ( ssa.gov/ online/ ss-5.pdf ). This can be submitted to the embassy/consulate along with photocopies of their passport, their child's signed passport and the CRBA. The Social Security Administration will then send the card to them or to an address of a friend or family member in the United States. It may take three to six months to arrive.
