<p>Are 529 accounts considered parent assets? We have accounts for each of our children but the combined value needs to be listed as parent assets even though some of the assets are earmarked for younger siblings?</p>
<p>Yes. Even if the benficiary is a younger child, you (the parent) are the account owner and so the value of all acccounts must be listed as a parental asset.</p>
<p>The reasoning behind this is that you can change beneficiaries fairly easily.</p>
<p>Thank you. That’s what I thought, but couldn’t seem to find that documented anywhere.</p>
<p>As noted above, people should make sure the parent is listed as the account owner, and not the student.</p>
<p>One other advantage of having college savings in the parent’s name is that the parent can transfer the money between siblings. Therefore, if one sibling receives a large scholarship, the parent could transfer some of the money to a different sibling who has more need for the money. </p>
<p>Some people have grandparents, aunts or uncles own separate 529 accounts to include any money those relatives wish to contribute, and which don’t get reported on fafsa, as I understand it.</p>
<p>
then you have to report siblings’ accounts on the student’s FAFSA.</p>
<p>^ yes, sibling 529s must be reported on FAFSA if they are in the parents’ names. An option is to open student-owned 529s which are not reportable on sibling FAFSAs.</p>
<p>To recap:</p>
<p>All parent-owned 529s for the benefit of the student or siblings must be reported as a parent asset on the student’s FAFSA.
Grandparent-owned 529s for the benefit of the student or siblings are not reported on FAFSA.
Student-owned 529s are reported on FAFSA (as parent assets).
Sibling-owned 529s are not reported on FAFSA.</p>
<p>@vballmom - if I understand your posting, it seems that there is a huge incentive to move money into a sibling-owned 529, especially if the sibling is more than four years younger. Do the rules allow you to do this, then move money back to the older sibling during senior year of college when FA calculations are finished? Do these rules also apply to Coverdell ESAs?</p>
<p>Child-owned 529s are the property of the minor child, similar to a UTMA. Just like UTMAs, they cannot be transferred from one child to another. That’s the advantage of a parent-owned 529 that is lost when you open a child-owned 529. The same rules apply to Coverdells.</p>
<p>[Does</a> a 529 Plan Affect Financial Aid?](<a href=“How do 529 plans Affect Financial Aid? - Savingforcollege.com”>How do 529 plans Affect Financial Aid? - Savingforcollege.com)</p>
<p>One of the great things about CC is that people quickly point out my mistakes. The fafsa rules were changed so that a 529 in the name of the student is treated the same as a 529 in the name of the parent.</p>
<p>Generally, the colleges that offer the best need based aid also require the submittal of the CSS Profile in addition to Fafsa. According to the following link, that form is now requiring information on any 529 account that lists the student as the beneficiary. This is because so many people were having grandparents, aunts and uncles hold the student’s college savings under that relative’s name so it didn’t show up on fafsa.</p>
<p>[FinAid</a> | Saving for College | Section 529 College Savings Plan Loophole](<a href=“Your Guide for College Financial Aid - Finaid”>Your Guide for College Financial Aid - Finaid)</p>