Already filed FAFSA, then discovered UGMA account: How to deal with it?

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[quote=“BelknapPoint, post:4, topic:2086029”]

I should have included this in my previous post: keep in mind that 529 contributions can only be made in cash, so moving the current UGMA stock assets to a 529 account will require selling the stocks and potentially realizing a capital gain that will be taxable income to the UGMA beneficiary (your son). Depending on the amount of any gain, this might also bring the kiddie tax into play.

I gathered that. Selling the stock would create a capital gain of roughly 3K – somewhat over the kiddie tax trigger. I don’t quite understand the implication of that, to be honest, but will do some research.