Help with small inheritance

Paying for College
1

<p>Hi all,</p>

<p>Just thought I would reach out to you folks who may have more experience in this area than I do. Here's the story: My almost 17 year old daughter is due to get a small (10K)inheritance from her grandmother's estate. It won't be available to her until she is 18. We are not sure what to do with it. She will begin college at 18. If it is in a trust, how does that affect her FAFSA? Will all of it be counted on the FAFSA that we would complete for her sophomore year of school? Is there any way to break it down so that it can be used for college costs over all of her college years? </p>

<p>Any suggestions are welcome.
Thanks,
Tiggrsbride</p>

2

<p>The full value of the inheritance would not be used in the financial aid formula. Student assets are counted at 20% of their value each year and that is added to the EFC. </p>

<p>If somehow you can have money in a parent held account, it would be counted at only 5.6% of its value.</p>

<p>I know there are folks here who can advise on how to do this.</p>

3

<p>Thanks for the information! I need to figure out the details so that the funds can distribute to the rest of the family, while my daughter’s money will wait until later next year.</p>