Cloverdell ESA

Paying for College
1

<p>My daughter has Cloverdell ESA. I pay into it, but it is in her name with her SS number attached to the account.</p>

<p>I've read conflicting information regarding Educational Savings Accounts and the FAFSA. Even though it is in my D's name, can I call it my asset on the FAFSA? (She is my dependent.)</p>

<p>If that isn't possible . . . we went to the bank this morning and they said that they cannot change the owner of the Cloverdell, but that they could close that account and open a new one as a 529 in my name so we can show it as my asset on the FAFSA. That seems too easy. Are there consequences on my/her taxes if we do this?</p>

<p>Thanks for your advice.</p>

2

<p>Esa is under your child name. It actually counts more and increase your efc. Recommend you close acct.</p>

3

<p>Assuming you mean a Coverdell savings account, it is reported as a parent asset, same as a student owned 529 account

[Completing</a> the FAFSA 2011-2012/The Application Questions(40-42)](<a href=“http://studentaid.ed.gov/students/publications/completing_fafsa/2011_2012/ques3-2.html]Completing”>http://studentaid.ed.gov/students/publications/completing_fafsa/2011_2012/ques3-2.html)
Question 41 instructions</p>

4

<p>How about Coverdell controlled by a grandparent? Where does that get reported on the Profile? I have been told on CC that it is reported as a parent asset, even though it is owned and controlled by grandparent with kid as beneficiary. Is this correct?</p>