<p>I read that a 2006 law says any family business & its assets do not have to be listed on the FAFSA (if under 35 employees, and no limit to # of businesses). We have an LLC that holds a piece of land. If I put my other property , an industrial building and a rented farm(we are property rich, cash middle-inc at the moment) under the LLC, am I correct in thinking it doesn’t need to be reported? Is there a time limit? My kid is a HS junior now. A college planner also told me that annuities and cash value life insurance doesn’t get listed either… insinuating we put our cash into these types of investments to keep them off the books (although I’m thinking that the CSS will include them). Has anyone done these strategies?</p>
<p>It is true that annuity values and cash values are not listed as assets, however they are also usually not available to use for tuition. The key to determining whether to rearrange assets is whether you might need that asset available to pay your EFC or your unfunded need.</p>
<p>Not all schools fully fund EFC. Your EFC may be higher than you think. Before you begin juggling things, be sure it would even help:</p>
<p>[Federal</a> Student Aid - IFAP: iLibrary - EFC Formula Guide](<a href=“http://www.ifap.ed.gov/ifap/byAwardYear.jsp?type=efcformulaguide&awardyear=2010-2011]Federal”>http://www.ifap.ed.gov/ifap/byAwardYear.jsp?type=efcformulaguide&awardyear=2010-2011)</p>
<p>Run your income numbers through the formula, what is that EFC? If your EFC is already $20k or something, than it may not pay to move anything as most publics are in that $20-30k realm and include loans in the package.</p>
<p>The rule on a business is usually 51% controlling ownership plus less than 100 employees. If you meet those two requirements, there are still additional rules on real estate. I have seen it posted that if a person owned a rental home that would need to be listed as an asset, unless it was something like a B&B where maid service was provided. In other words, real estate holdings are viewed differently than, say, a sandwich shop or a dry cleaners. </p>
<p>When Swimcatsmom or kelsmom chimes in they can give you some of those details</p>
<p>^^^</p>
<p>True…sometimes people do all these financial gymnastics only to find out that they still aren’t going to get anything because their income or other assets are too high. </p>
<p>Free federal money is for lowish income people. Many colleges put loans or gaps in aid packages.</p>
<p>I got that life-insurance pitch too. Don’t fall for it.</p>