Life insurance question

swimcatsmom
Tue, 04 Oct 2011 22:39:16 +0000

Assets do affect how much aid you can get. But if she is only getting loans (not grants) anyway, the only difference will be how much is sub versus unsub.

Gifting the money is a bad idea. There are tax consequences if the gift is substantial Plus “giving” it to he aunt with the intention of taking it back does not pass the smell test (in other words she is just trying to hide it, not really giving it away).

If her dad is low enough income (<$50k AGI) and meets some other criteria, it’s possible the assets may be ignored anyway.