Yes.
Yes, under current FAFSA rules both a hit as income and as an asset if the funds are available at the time of filing FAFSA. Note that income is reported on a prior-prior basis, so income or a gift received in 2022 will not be reported on FAFSA until the FAFSA for the 2024-2025 academic year. ALSO, the FAFSA rules will be changing, I believe with the 2023-2024 FAFSA (unless the planned revisions have been pushed back), such that gifts and distributions for the student’s benefit from 529 accounts not owned by the student or a reporting parent will not need to be reported on FAFSA, as they have been up until now. (Distributions from 529 accounts owned by the student or a reporting parent have never been reported on FAFSA as income, but they have been and will continue to be reported as an asset.)
529s owned by the parent or owned by the student (such as a UTMA/custodial 529) are both reported on FAFSA as a parent asset, which is much more favorable treatment than if reported as a student asset.
This depends on the rules for the particular 529 plan. Some allow ownership changes to varying extents, and some plans are less flexible.
No gift tax considerations if $16k or less, and no FAFSA income implications as this would be considered a gift to a parent.