Liquidating a UTMA - worth it?

What are you saying? That your kid would gift you the $60k and you would keep it in a new account of your own to only be used for his college expenses? He would have to file a gift tax return if he gifts you more than $14k in one year.

A better idea is that he puts it into his own 529, which will then be counted as a parent asset for FAFSA.