<p>How are irrevocable trusts treated for FAFSA/CSS ?</p>
<p>Generally as an asset to the owner, same as any asset. So if the trust is for the student it is a student asset. In most cases it does not matter what restrictions are put on the trust it is still treated as an asset for financial aid purposes. For instance if someone left the student $50,000 in a trust and specified they could not access it until they were 30 and that it was not for college expenses, it would still be considered an asset and available for college expenses. The exception would be certain specific types of trust such as ones set up for future medical care after an accident.</p>
<p>Finaid has more information here</p>
<p>[FinAid</a> | Professional Judgment | Trust Funds and Custodial Accounts](<a href=“Your Guide for College Financial Aid - Finaid”>Trust Funds and Financial Aid - Finaid)</p>
<p>We did extensive research into this last year as an irrevocable trust was being set up in our family. If you (the parents) or the student are named as beneficiaries for this irrevocable trust, the value of your shares (both of them…parent and student) MUST be declared as assets on the FAFSA. MUST…no exceptions. For the parents, this value is assessed for finaid purposes at 5.6%. For the student, it’s 20% of the value added in. </p>
<p>The reason is this…even in a irrevocable trust, if ALL of the trustees agree to sell the place, it becomes cash available…and that COULD happen.</p>