Fafsa & Ugma accounts

Paying for College
21

<p>
[quote]
Section 529: A Good Plan Just Got Better : published at CarolinaNewswire.com - Stay on top of the day's business & technology news also indicates what vballmom said above: that student-owned 529 plans do not count in the 2008-2009 year but will count as a student asset for the 2009-2010 FAFSA and thereon after.

[/quote]

No. There was a loophole in the rules for 2008-2009 that meant 529s in a student's name did not have to be reported. This was corrected and for 2009-2010 student owned 529s (including those for any siblings) are reported as parent assets. </p>

<p>Here is a link to the preliminary 2009-2010 paper FAFSA which has more detailed instructions. The final one doesn't seem to be out there that I can find.
<a href="http://ifap.ed.gov/fafsa/attachments/0801SummaryChanges0910FAFSA.pdf%5B/url%5D"&gt;http://ifap.ed.gov/fafsa/attachments/0801SummaryChanges0910FAFSA.pdf&lt;/a>
Page 2 has the instructions about assets</p>

<p>
[quote]
Investments also include qualified educational benefits or education savings accounts such as Coverdell savings accounts, 529 college savings plans and the refund value of *529 prepaid tuition **plans. For a student who does not report parental information, the accounts owned by the student (and the student’s spouse) are reported as student investments in question 42. **For a student who must report parental information, the accounts are reported as parental investments in question 92, including all accounts owned by the student and all accounts owned by the parents for any member of the household. *

[/quote]
</p>

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<p>Infinity,</p>

<p>I completed the FAFSA and PROFILE last year for the first time. I understand your frustration. </p>

<p>For FAFSA 2009-2010:</p>

<p>"Normal" 529 plans (parent owner, child beneficiary) are reported as PARENT assets. This means that if you have (own) an account for each different child, you report them all since you, the parent, own them all.</p>

<p>UGMA/UTMA 529 plans (student owner, any beneficiary-but usually student, parent custodian) are student assets but REPORTED as PARENT assets for Dependent Students. For Independent students they are are reported as student assets.</p>

<p>As far as I can tell, any other UGMA/UTMA accounts (student owner, parent custodian) are reported as STUDENT ASSETS.</p>

<p>PARENTAL ASSETS
See the statements below on the FAFSA 2009-2010 on-line help under What is your parents' net worth of current investments.</p>

<p>"Investments include real estate (do not include the home you live in), trust funds UGMA and UTMA accounts, money market funds, mutual funds, certificates of deposit, stocks, stock options, bonds, other securities, installment and land sale contracts (including mortgages held), commodities, etc.</p>

<p>Note: UGMA and UTMA accounts are considered assets of the student, and must be reported as an asset of the student on the FAFSA, regarless of the student's dependency status.</p>

<p>Investments also include qualified educational benefits or education savings ac****s such as Coverdell savings accounts, 529 college savings plans and the refund value of 529 prepaid tuition plans. Note: Students who must report parental information on this form should report all qualified educational benefits or education savings accounts owned by the parents and/or the dependent student as part of the parental assets in question 92."</p>

<p>STUDENT ASSETS
See the statements below on the FAFSA 2009-2010 on-line help under What is your currnet net worth of investments.</p>

<p>"Investments include real estate (do not include the home you live in), trust funds, UGMA and UTMA accounts, money market funds, mutual funds, certificates of deposit, stocks, stock options, bonds, other securities, installment and land sale contracts (including mortgages held), commodities, etc.</p>

<p>Note: UGMA and UTMA accounts are considered assets of the student, and must be reported as an asset of the student on the FAFSA, regardless of the student's dependency status.</p>

<p>Investments also include qualified educational benefits or education savings accounts such as Coverdell savings accounts, 529 college savings plans and the refund value of 529 prepaid tuition plans.</p>

<p>If you are not required to report parental information and you own (or if married, your spouse owns) any of these qualified educational benefit plans report the current balance of the plans as a student/spouse asset in question 42. The amount to be reported for a prepaid tuition plan is the "refund value" of the plan."</p>

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<p>Can you avoid filling out a fafsa if you are just hoping for merit based aid?</p>

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<p>Depends on the school. Some schools require submission of FAFSA for consideration of any aid, including merit. You would have to check with your school(s) for their policy.</p>

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<p>infinity, a UTMA of any stripe is a student-owned asset. That's what UTMA means: Uniform Trust for Minors Act. You are the trustee of the assets owned by the minor.</p>

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<p>In my state (Washington) the T is for Transfer </p>

<p>Chapter 11.114 RCW
Uniform transfers to minors act</p>