<p>I have two sons likely to graduate in 2010. I tried to begin EFC calculations for them, but I need help with a special situation.</p>
<p>We have a developmentally disabled 17yo daughter. She has a Supplemental Needs Trust that was funded by my dad (>$220K). I'm confused about how to include the trust in the boys' EFC worksheets. The trust has its own taxpayer ID and we do its taxes separately. </p>
<p>I have two questions. First, whose assets is the trust considered to belong to, ours or hers? Second, what kind of general impact will it have on the boys' eligibility for financial aid? Any guidance is much appreciated. We are comfortable but not affluent.</p>
<p>thats a very good question-
we have friends in similar circumstance- they have just been appointed guardians, for their child ( as she is no longer a minor)
I would assume that a trust that is set up for her care, would belong to her, but you probably need your trust manager to explain it to you.
I also don't know how to mention it on aid forms, you will have to mention it- however- you should also be able to provide some sort of documentation that indicates that it is for her care and not available for tuition
I hope one of the experts that frequent these boards fills you in.</p>
<p>Thank you, I'm glad I didn't miss something obvious. I sure hope one of the experts chimes in, so that I can make progress on the EFC calculator!</p>
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I have two questions. First, whose assets is the trust considered to belong to, ours or hers? Second, what kind of general impact will it have on the boys' eligibility for financial aid?
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<p>With 25+ years in the financial services industry, here's my take on things:</p>
<p>(1)The trust is its own legal entity. It has its own tax ID, you file its taxes separately. I would imagine there are probably restrictions on what it can be used for as well. This type of trust is set up to keep it separate from other family's assets and preserve it for the family member who needs it most--your disabled child. As such, the trust assets cannot be considered part of your assets or your college-bound child's assets.
(2) The trust assets will not have any impact on financial aid since the trust should not be made part of the FAFSA or Profile formula.</p>
<p>You're correct, SpringfieldMom, the trust is for her use only and is irrevocable. It would certainly (obviously) be better for us to not have to include it. Thank you for the explanation.</p>