[shirley selhost]

My daughter wants me to adopt her baby as soon as it is born. How do I do this?

[Synnen]

You get a lawyer. You get your daughter counseling. You go to court. She signs over her parental rights. The biological father signs over his parental rights. You sign adoption papers.

The biological father IS willing to sign over parental rights, correct? If he's not, you've got a fight on your hands.

Does your daughter understand that adoption is FOREVER? She will NEVER get her child back? This isn't something she can change her mind on later.

Nothing can really be done aside from seeing a counselor (for her) and consulting a lawyer (for you) until the child is born, though.

[Gernald]

Relatives, often grandparents, are frequently called upon by family circumstances to step in as caregivers for children.

Many of these arrangements are informal, with the relative(s) providing kinship care; however, informal care gives the caregiver no legal standing with courts, schools, state agencies, doctors, hospitals, and others, and can tie their hands when decisions need to be made on the child's behalf.

This series of articles will present the legal options generally available when it becomes important for the caregiver to have legal standing in order to provide the best environment for the child. Options available depend on state law. Each state has its own laws and its own court system.

Options for Relative Caregivers

Adoption (in all states)
Guardianship (in all states)
Legal Custody (in all states)
Open Adoption with Agreements (in some states)
De Facto Custodian (in some states)
Permanent Guardianship (in some states)
Standby Guardianship (in some states)
Subsidized Guardianship (in some states)
Medical & Educational Consent (in some states)
There are several factors to consider in relative adoptions:

Adoption laws are generally state laws and can differ substantially from one state to another.
In light of the differences in state adoption laws, the following is general information for your consideration. There is no substitute for advice from a competent licensed adoption attorney in your area who is familiar with the legal intricacies. (To find an adoption attorney, visit the Directory of Professionals.)
"Relative adoptions" are not the same as "stepparent adoptions." {For information, see Stepparent Adoption.)

In most states, relative adoptions are treated somewhat less formally than non-relative ("stranger") adoptions. They may require only an abbreviated homestudy, or none at all. For this preferential treatment to apply, the adoption must fit the definition of a relative adoption under state law. Most state laws define "relative" by degree of relatedness. For example, Arizona adoption law defines a "relative" as "uncle, aunt, adult sibling, grandparent or great-grandparent of the child of the whole or half-blood or by marriage or adoption." Not fitting in this general definition are cousins of any degree or children of nieces or nephews. You will need to consult your attorney or the specific law in your state.

General Considerations
Just as with any adoption, there must be a proper termination of the parental rights of both the child's biological parents. New birth certificates are issued, and adoption records are sealed in accordance with state laws.
Adopting a close relative's child may be the best solution for the child, but it can cause a radical change in the dynamics of your relationship with that relative. These types of relationships have the potential to become strained or severely damaged due to questions of "quasi co-parenting" and exactly who is the child's parent. The reality is that this dynamic will be different for everyone involved, including all family members, and extending to other children the biological parents may have now or in the future. You will be confronted with questions of relatedness (is your child their cousin? Sibling? Aunt? Uncle?), among others. Can this be done? Yes. Will it be a snap? No. The openness encouraged in adoptions today will help communication with all parties, and those experienced with relative adoptions strongly recommend counseling before and after the adoption whenever possible.
Depending on the child's age and the circumstances of the adoption, talking to your child about the adoption may involve additional complexities due to previous and current relationships, death and grief, disappointments, and human failings. Do seek out support groups and educational books and tapes.

I found this at: Relative Adoption - Adopt a Relative, Grandchild, Grandson, Granddaughter
Hope it helps!