We didn’t go through the financial aid process, so I am by no means an expert on those forms. I have however worked on valuing illiquid assets for tax purposes. I would think that the same rules would apply to restricted assets that the IRS allows for financial aid purposes. A cursory look says illiquid assets must be reported at fair market value on financial aid forms. Present value of future cash flows, illiquidity discounts etcs would all be useful in determining a fair market value. It may be worth speaking to a valuation expert regarding the fair market value of the trust if it’s swinging your financial aid numbers that much.
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