Hello, I have 18 years old daughter who is going to college and 14 year old son.
I am thinking to set up revocable trust account for my 14 year old. Does this trust account have to be declared as my asset in my daughter’s FAFSA application? Thank you.
Here’s the formula. You can print it out and run the numbers with different scenarios. https://ifap.ed.gov/efcformulaguide/attachments/1920EFCFormulaGuide.pdf
I would say yes, since it’s a revocable trust, any trust assets must be included if you are a parent who will be reporting financial information on FAFSA for a child.
Who will be the owner and beneficiary of the trust. If you maintain any ownership (which I think you do with a revocable trust) then this is still yours.
Yes, because it’s revocable which suggests that the parents are setting this up to hide their own assets in a younger child’s name, and that the parents will be taking that asset back when it’s not being counted on FAFSA.