Join for FREE,
and start talking with other members, weighing in on community polls,
Also, by registering and logging in you'll see fewer ads and pesky
welcome messages (like this one!)
Child A starts college in Fall 2009 ($40K in her 529 account)
Child B starts college in Fall 2011 ($25K in her 529 account)
When filling out the FAFSA application for child A, do I include $40K or $65K in the sum of the parents total investments?
how you can count an asset for one child when it is only available to the other child.
the accounts are reported as parental investments in question 92, including all accounts owned by the student and all accounts owned by the parents for any member of the household.
Child-owned 529 accounts (UGMA/529s) are restricted and can only be used for the child who is named on the account. That's why UGMA/529 accounts owned by child #2 are not reported as parent assets when filing child #1's FAFSA. That's also why I've become a fan of them.
The assets of other children are not considered by the need analysis formula. So putting parent assets in the name of a younger (or older) sibling can help shelter them from the need analysis. On the other hand, when that child enrolls in college, his or her assets will be assessed at the usual rate for students.