In know things like this have been asked before, but my son is applying for Aid and I filling out the CSS reached the question siblings assets/
"Do the student’s parents have the following assets? Own assets held in the names of their children*
That question “clarifies” itself by saying "An asset owned by a sibling, in his/her name, should not be reported on this application. For example, a checking account owned by the student’s sibling. Select yes if there are parent assets that, although held in a dependent child’s name, are owned by the parent such as funds in custodial accounts, UGMAs (Uniform Gifts to Minors Accounts), or other savings and investment accounts for the applicant’s siblings. "
Well my daughter does have a UTMA? Her grandparents gave it to her to fund her special needs school. (for elementary, middle and high school) Do I have to report this on the CSS? This is certainly not something I’m using as as a tax shelter, and it’s not an asset I control. As I said it was set up by my parents for my daughter’s schooling.
Also I’m confused by the CSS explanation that says “An asset owned by a sibling, in his/her name, should not be reported on this application. For example, a checking account owned by the student’s sibling.” Since a minor can’t have an account in their own name, what do they mean by this? I mean all teen checking or savings accounts are really just joint accounts. Does anyone have any guidance on that? If my daughter has savings account with several thousand dollars from years of birthday money from our large family, should that be reported here?
Some college students DO have older siblings. These kids could very well have their own bank accounts. Those do not get listed on sibling financial aid forms.
Who is the owner of the account for the UTMA, and is this the kid who is college bound and completing the financial aid forms?? How old is this student? Who “owns” the account?
If your college bound daughter is filing a FAFSA or Profile form, the money that is hers in any accounts should be listed. So if she earned the money or saved the money…it really doesn’t matter where it is…it’s her money. It gets listed as an asset on the FAFSA and Profile.
In terms of those other accounts…college savings accounts…you need to list them all if you are the owner because in most cases those funds could be transferred from sibling to sibling.
@BelknapPoint does a better job of explaining this than i do!
No my Son is college bound student. My daughter, currently in elementary school “owns” the UTMA but her grandparent is the custodian. I have no access to the money, but her grandmother uses it to pay her school tuition. My question is does her money need to be listed on my Son’s profile.
I believe if the grandparent is the custodian…and pays the bills…this money is NOT listed on the financial aid application forms for siblings.
Hoping @BelknapPoint will clarify.
If your daughter has a savings account with her money…that money is not listed on her brother’s financial aid forms.
Assets that are legally owned by a sibling are not reported on FAFSA or Profile. That includes money owned by a minor that is in a joint bank account. A UGMA/UTMA account holding assets that are properly owned by a sibling (i.e. the account beneficiary is a sibling) are not reported on FAFSA or Profile.
The question being asked about has to do with parent assets that are held under a child’s name, a practice that in the past was much more common than it is now, and was primarily used as a way to reduce taxes because a child was typically in a lower tax bracket. When the “kiddie tax” rules changed several years ago it generally became less advantageous to engage in this questionable practice.