Yes. Really. Just because certain funds are deposited in a bank account titled to person A doesn’t mean that they don’t really belong to person B. Come on, think about what it could mean if your logic applies to FAFSA reporting. Let’s say that a student with divorced parents inherits $1 million from a grandparent and subsequently that money is deposited in a bank account that is titled in the name of the non-custodial parent. Since the assets of a non-custodial parent are never reported on FAFSA (using the current FAFSA rules but I can make this easily fit to what the new reporting format will be), FAFSA would never see this student’s wealth if as you claim it doesn’t need to be reported as a student asset.
Show me where FAFSA rules state that a student’s asset in a bank account titled in someone else’s name should not be reported on FAFSA as a student asset.