FAFSA LLC & Trust Guidance

MJMNW
Mon, 29 Nov 2021 18:24:46 +0000

We need to figure out the following:

We currently have a fair amount of money in cash largely due to the recent sale of our primary home and some from an inheritance. We purchased another primary home in a less expensive region of the country and were looking to use theses funds to purchase a duplex as an investment property for cash or at least have a cash offer as a fallback option in todays hyper competitive real estate market.

We currently have an LLC set-up to purchase and conduct the day to day business of managing the rental property(s).

We also have a family trust set-up (a Revocable Living Trust) in which our primary residence and automobiles are also included (this was largely due to my current health and to make things easier for my family upon my death)

We have a son (senior) who is primarily looking at going to a state school for college.

My question(s), regarding the FAFSA application, would it be wise to take the cash that we have and payoff our mortgage. Would it increase our chances of obtaining financial aid and by how much? Should our primary residence and vehicles be reported as assets since they are included in the Trust or should they be treated as non-reportable assets? Am I allowed to take the balance of cash (or portion) and make a capital contribution to the LLC to purchase a duplex as a way of shielding assets or would I have to report this?

Thank you in advance for any guidance or suggestions.