Legitimate ways to reduce student's assets?

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Unfortunately, to invest all of the $50,000 means liquidating the account (529s must be funded with cash). That’s a big step and I’m feeling pretty cautious about it. I would be more comfortable selling a portion of the UTMA. Also, liquidating the account would assign my son a substantial capital gain as this account is 18 years old.

Have you taken into account that, “the tax kicks in only when your child’s investment income exceeds $1,900. The first $950 reported on your return is tax free, the second $950 is taxed at the child’s rate.” If you liquidate some this year and another portion at the beginning of next year before filing FASFA. You son would have 2<em>$950 tax free and 2</em>950 at the child’s rate.
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