529 accounts for nieces/nephews?

Paying for College
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<p>I’m posting for a friend (call her Sue) hoping that some of the FA gurus on the site can help her…..</p>

<p>Sue’s sister passed away after a long illness. She had opened 529 accounts for each of her nieces/nephews (eight 529 accounts at $50K each, totaling $400K). Only one is for Sue’s daughter, the other for other sibling’s kids. Apparently Sue was the “go to” person for this sister, so the sister had Sue down as the secondary owner for ALL of the accounts, not just those of her D. So now for FAFSA and PROFILE does Sue have an additional $400K in assets, since she is the owner of her nieces/nephews’ accounts, or $50K (her daughter’s only)? Obviously at approx 5% asset assessment there would be a significant impact on FA for Sue's D.</p>

<p>If $400K, is this something a FO would make a special circumstances adjustment for?</p>

<p>Thanks!</p>

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<p>Section 529 college savings plans of siblings are reported as assets of the parent if the parent is the account owner. 529 accounts are not reported as parent assets if they are held for the benefit of extended family members. Sue would report the value of all 529s that are for the benefit of her daughter, not her nieces and nephews.</p>

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<p>What a generous gift Sue’s sister bestowed on her nieces and nephews!</p>

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<p>vballmom - Thanks so much for such a quick reply!!!
Owlice - yes, apparently she had no children of her own and was very fond of her nieces/nephews.</p>