Kids Asset Accounts

Paying for College
1

<p>In typical government fashion they made this whole FAFSA application process as clear as mud. I have looked around and read a number of posting as well the the online advise about various situation, however, I could not find the my particular situation.</p>

<p>Here is the situation</p>

<p>Kid 1 - Attending College in the Fall of 2013
Kid 2 - Still in high school for a number of years</p>

<p>Finances -</p>

<p>Kid 1 - Has a personal saving and checking account since 16 - Reportable under the kid 1's FAFSA checking and saving amount</p>

<p>Parents/Kid 1 - Has a Custodial Saving (since a baby), Custodial Investment account, and 529 Account</p>

<p>At this point I am assuming this is all reportable under the parents either Checking & Saving or Investments Assets since I control all these accounts.</p>

<p>Let me know if my assumptions are correct</p>

<p>Here is the real questions</p>

<p>Parent/Kid 2 - Has a Custodial Saving (since a baby), Custodial Investment account, and 529 Account</p>

<p>I know from what I read that everyone agrees Kid 2's 529 Is reportable under the parents Assets since it could be allocated to any kid at any time.</p>

<p>At this point i do not believe Kid 2 Custodial Saving, Custodial Investment account are reportable assets under the parents. The reason I say this is the fact they can are not available to Kid 1, since I have been told money can not be taken or moved.</p>

<p>General link on the subject What</a> parents (and grandparents) need to know about custodial accounts</p>

<p>I know in PA the custodial accounts can stay with the parents name until 21.</p>

<p>The FAFSA information says to report all UGMA and UTMA accounts but they do not clarify it as to the college age kid or all kids accounts.</p>

<p>Any insight on this would be appreciated and any links showing out to handle kid 2" accounts.</p>

2

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</p>

<p>Incorrect; the savings and investment accounts, if they have Kid 1’s SSN on them, are child accounts and are reported as such on FAFSA. It doesn’t matter who the custodian is.</p>

<p>The 529 is reported as a parent asset.</p>

<p>

</p>

<p>Whether Kid 2’s 529 is reportable depends on whether it’s a child-owned 529 or a parent-owned 529. If it’s a parent-owned 529 it would be titled something like:
Parent 529
Kid 2 BENE. </p>

<p>In that case it’s reportable on FAFSA. </p>

<p>If it’s a child-owned 529 it would be titled something like:
Parent CUST
Kid 2 UTMA</p>

<p>Sibling-owned 529s are not reportable on FAFSA.</p>

<p>

</p>

<p>Correct.</p>

3

<p>VBallMom, </p>

<p>Thanks for the confirmation and I realize it got the Kid 1’s saving and investments wrong they are reportable under his information, i knew that, just wrote it down wrong</p>

<p>For the 529s they are title this way:</p>

<p>Parent OWNER FBO Kids names </p>

<p>FBO = For Benefit Of - which means I own them therefore 100% reportable under me.</p>