<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>
<p>
</p>
<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>