<p>I'm calculating my EFC right now and my dad announced his plans to transfer all of his money into my siblings' accounts to make it seem like he's dirt poor.</p>
<p>He's also considering buying a house now apparently.</p>
<p>This won't work, right? I'm scared that my dishonest father's tactics will get me rejected at my desired colleges!</p>
<p>Obviously not. They require tax returns from multiple years to prevent something like this.</p>
<p>if he wants to hide assets he should talk to an accountant. his plan is pretty half-assed, even from a practical standpoint.</p>
<p>Buying the house would work at FAFSA only schools if it’s the only home your parents will own. Putting his money in sibling’s accounts is another thing, they would owe Uncle Sam gift tax.</p>
<p>Side question: I calculated my EFC (marking my location as Washington state, I’m actually in Canada) and it came to about 6K. My family’s income is about 30K and our total assets are about 277K.</p>
<p>Is the result of 6K within the realm of accuracy?</p>
<p>No, your parent’s assets alone will be assessed at 5.6%. Though not exactly sure how this works for an international. An American with an income that low may be able to get around assets being counted by FAFSA schools by using the short tax form. Hard to believe an international would get that break, but who knows?</p>
<p>Also remember there’s often a huge difference between the EFC FAFSA calculates, and the EFC schools using Profile or their own methodology come up with.</p>
<p>Actually if your parents income is under $50k and they meet other requirements you may qualify for the simplified needs test in which assets are ignored. But that is for FAFSA EFC only.</p>
<p>Are you a USA citizen? If not (and are not an eligible permanent resident) you are not eligible for FAFSA.</p>
<p>I don’t know if his plan is a good idea or not - I suspect not. But I don’t think
it is illegal or even cheating for that matter. So you don’t have to worry on that
front.</p>
<p>Buying a house is fine - not illegal or cheating at all. Trying to hide assets by putting it in someone else’s name is absolutely illegal and fraudulent.</p>
<p>I wouldn’t be quite so judging about transferring assets, although I agree that the father’s intent seems suspect. It’s prudent planning to create college accounts in the form of 529s or the old education IRA vehicles for all children in a family. There are no gift tax implications, and in some states this kind of investment is explicitly encouraged through tax deductions or credits.</p>
<p>I didn’t get the impression from reading the OPs post that the plan was to open 529 accounts for the siblings. That would not be hiding them but providing for their education. The OP said the dad was planning on transferring his savings into the siblings accounts. Slightly different thing.</p>