Can parents transfer money from checking account to decrease EFC?

Have them move the money now. If you’re filling out profile, they will most likely want a copy of the bank statements, and you don’t want to have to explain while the balances are that high if it’s not your mother’s money.

You might have to explain where the money went…if your tax return reflects interest that doesn’t align with your bank balance.

The most I oortant thing is to be HONEST. If this money is your mother’s money…then so be it.

I would not consider Scripps a safety

I believe that assets greater than $50k eliminates financial aid at UMich for OOS.

That’s a really low threshold. Does the definition of assets here include equity in the primary home?

“Was your mom able to file a 1040A or 1040EZ in 2017?”

I’ve always wondered about this. This isn’t a stand alone 0 EFC means test, is it? We always file the 1040A, but always have an EFC.

@uwalummom

For auto $0 EFC, and simplifed needs test, you need to have income below a certain threshold…AND one of the other qualifiers like the 1040a tax form.

You can still have a family contribution with simplified needs test…it’s not a $0 EFC in all cases.

And if your kiddo attends a Profile school…well…there is NO simplified needs test or auto $0 for the Profile.

@uwalummom no it’s not.

Obviously, someone earning $99k and meets the above would have a decent sized EFC

You can’t qualify for simplied need test with a $99,000 income…and you can use a 1040a with income only up to $100,000.

The income limit for simplified needs is $49,999.

The income limit for auto $0 is something like $20,000.

Thank you @thumper1 and @mom2collegekids - I appreciate you clarifying that for me!

Right. My point was that simply being able to file with 1040A or Easy won’t get someone an auto 0 EFC since someone earning $99k might be able to file with those forms.

If it is your mother’s money and your brother “holds it for her” in an account in his name only she would be guilty of committing fraud on a federal document. Same as if she hides it under a mattress and does not report it under “cash on hand”.

I feel for you OP because face it, for some of the schools you plan to apply to, all that money in savings could go in two years, leaving your mother penniless and you without a bachelor’s degree.

Some thoughts in general, not specifically saying to do anything right now that would be dishonest, and definitely npot wanting to encourage fraud, but in the long run…

  • Can your mom open an IRA? She will need to think about retirement.
  • Can she pay off your house (if your family is buying a house)?
  • Can she open a 529 for you?
  • Can you look for schools with merit scholarships, instead of need-based aid?
  • What are your public school options?

Hoping you can find some good advice to make this situation workable.

I have to wonder:

I’m not sure OP understands the many ways checking accounts can be structured or linked and still remain individual. I am the master on a set of linked accounts, including D1’s own checking and savings. (This allowed me access and troubleshooting when she was abroad. But her account is hers. Her money.) I’m the “primary,” I pay the service fee, eg. But it’s D’s money in the accout in her name and this structure is merely administrative.

If I were reporting my assets, I wouldn’t include her $$.

It might help here if OP clarifies who has what monies in what account names. Did Mom simply retain control of the money there when Dad passed (as co-owner/surviving spouse?) If so, it’s her money. To move it for the purposes of hiding is not legal.

But if what OP is giving us, this 150k figure, is merely the grand total for the combo of accounts, it’s not clarified yet. Brother may legit have accounts under this umbrella and his monies should be unlinked. It’s legit and explainable. It’s his.

So we need more info from OP. It’s a confusing trail to follow.