^In a 529 or parent’s Account , it’s assessed at 6%.
Is that always the case with 529 account funds?
Maybe I’m missing something but Even if a 529 was opened and funded with the entire inheritance wouldn’t it all still be assessed at the student rate and not the parent rate. The 529 would be owned by the student, funded by the student for the benefit of the student. I don’t see any benefit as far as reducing available assets. It isn’t the typical situation where the parent owns the account and funds it with parent money for the benefit of the student where the funds would be assessed at the parent rate. If the account were owned by the parent but funded by the student wouldn’t that then be a gift to the parent that could be seen an attempt to circumvent financial aid rules?
I agree with others who said that an inheritance to an 18 year old may have been intended to help fund college and it is money that your student doesn’t have to hunt for elsewhere