Wondering if being an executor of an estate has any financial aid implications? The assets are going to be divided between three beneficiaries, but my DH is apparently going to be the executor of his parent’s estate, and wondering if that will have a negative impact. The estate is quite small, so not unduly worried – but would still like to know.
Thanks!
No, being executor has no impact on aid. At the point where money becomes “his,” it will end up reportable on the FAFSA as income and/or assets. But you don’t have to worry about that until the year after the year in which income is realized (prior-prior year income) or the year in which assets are his when FAFSA is filed.
If there was some fancy trust, reporting could be more complicated. But it doesn’t sound like this is the case.
Thank you!
If your husband will be paid for his work as executor, that may have an impact on need-based financial aid, both in terms of income (which, if paid to an executor, is usually not a large amount) when reporting for two academic years down the road, and in terms of assets if any such income is still in hand at reporting time. Inherited assets, which is unrelated to compensation for serving as an executor, is well covered by kelsmom above.
Thank you so much!
You might want to check this. I’m a trustee and beneficiary of my parents trust. I had to list fair market value on my kids FAFSA even though I haven’t received anything.
I would talk to a tax person or CPA who deals with this. I’d also want to read through the documents to see if there’s a trust involved.
My parents let me know that they were setting up a trust and I was the trustee. No big deal until I talked to the attorney. Not a lot of work but highly recommend you know what you’re signing up for. Even an executor.
Being an executor of a small estate is not the same thing as being a trustee/beneficiary of a trust.
I’m aware of this. My point was to have everyone meet with the attorney to review the details. Make sure everything is as it was portrayed and everyone knows their responsibilities.
Will do. Thank you!