<p>I have two bank accounts for when my boys had their bat-mitzvah's. Because they were under age at the time we opened the account, I opened the account in their name as well as my name. Do I count that under assents for the student or assets for the parent.</p>
<p>If the money in the accounts belongs to them they are their accounts.</p>
<p>I believe that if it’s a joint account the money should be listed half as theirs and half as yours. If it’s an UTMA it’s all theirs.</p>
<p>from [Completing</a> the FAFSA 08-09/The Application Questions(40)](<a href=“http://studentaid.ed.gov/students/publications/completing_fafsa/2009_2010/ques3-2.html]Completing”>http://studentaid.ed.gov/students/publications/completing_fafsa/2009_2010/ques3-2.html)</p>
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<p>From FafsaOnline.com:</p>
<p>Consider this: assets, savings, and cash in the student’s name carries more weight (which means that you get less aid) than assets, savings, and cash in the parents’ names. Student contributions are assessed at 20%, while parents’ contributions are assessed at not quite 6%.</p>
<p>[FinAid</a> | Saving for College | UGMA & UTMA Custodial Accounts](<a href=“http://www.finaid.org/savings/ugma.phtml]FinAid”>http://www.finaid.org/savings/ugma.phtml) </p>
<p>OMG - I’m not sure what it is - I think it may be a custodial account. I will stop by the bank this weekend and find out. If it is a custodial account, then it is in the child’s assets? Very confusing link above.</p>
<p>An asset in the child’s name or a custodial account for the child is reported as an asset of the child. The exception is 529 accounts (college savings accouns) which are reported as parent assets even if they are UGMAs. From the same link as post #4 (which is the official government instructions for how to answer the questions):</p>
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<p>Another thing to look at is whose ssn # any interest on the accounts is reported on. If it is reported on the child’s ssn then on FAFSA (where the interest must be reported as the child’s income) it will raise red flags if there is interest income shown but no assets to have generated that interest</p>
<p>If you are concerned that the child’s assets may increase the EFC then they can always use them before filing FAFSA to buy things they may need for college. For instance if they will be buying a computer then have them buy it before filing FAFSA rather than after. Of course this would not work if the assets are very large.</p>
<p>If the accounts are in the boys’ names with you as the custodian, then they are the boys’ assets. Minors cannot open bank or brokerage accounts and so will always need a custodian to be named. </p>
<p>If it’s a lot of money and is intended to help pay for qualified educational expenses anyway, then you can consider opening a student-owned 529 account for each of them and transferring the money there. The money will then be assessed at the parent rate of 5.6% rather than the student rate of 20% in the FAFSA formula (this is true for all parent- and student-owned 529s).</p>
<p>I had this exact situation. My D had worked hard for a few years to save up money to buy a good musical instrument. It was all her earnings (no part of it was mine), but she was under 18 so I had to be named on her bank account. We just made sure she bought the instrument before filing the FAFSA.</p>
<p>Go with the SS# under which interest is reported.</p>