<p>Since siblings' UTMA 529s don't get reported on the FAFSA, but the student's UTMA 529 is counted as a parent asset, each of my kids would have a different amount listed on the FAFSA as parent assets. The amounts would be vastly different because most of my son's money will have been used by the time my youngest starts college -- we'll have 3 in college at the same time, and 2 of them are going to the same school.
I'm concerned, even though I think having different amounts is correct -- wouldn't that make the financial aid officers suspicious?</p>
<p>Since you’ll be filing separate FAFSA’s for each child, how would one kid’s FA office know of what was on a sibling’s FAFSA? As long as you file correctly, you shouldn’t have any cause for concern.</p>
<p>Two of the kids are going to the same college, so I think the financial aid office might know.</p>
<p>The parent assets are the same for each FAFSA. You report all UTMAs together as parent assets - you don’t break them up separately for each child.</p>
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<p>That’s not correct. UTMAs are reported separately for each child as an asset of the child. Sibling UTMAs are not reported at all.</p>
<p>The OP was asking about UTMA/529 accounts, which are 529s that are owned by the child (as opposed to the more common parent-owned 529s). In general, 529s are reported as parent assets. However, sibling UTMA/529s are not reported as a parent asset. So if the student has a different balance in his UTMA/529 than the sibling, different parent asset totals will be reported for each child.</p>
<p>quote - However, sibling UTMA/529s are not reported as a parent asset. So if the student has a different balance in his UTMA/529 than the sibling, different parent asset totals will be reported for each child. </p>
<p>ok - which one is it then - you say they aren’t reported as a parent asset, but then you say the parents would have different asset totals per sibling - doesn’t make sense.</p>
<p>I was just answering the op who said they ARE parent assets. If they are, you would not have different totals per sibling.</p>
<p>When sibling accounts are added to the mix, things get a little confusing. The OP is asking about UTMA/529s, and you’re answering (I think?) about UTMAs.</p>
<p>A UTMA is an asset of the student and is reported by the student on the student section of FAFSA. It is not reported as a parent asset. Sibling UTMAs are not reported at all. UTMAs, like all assets considered “student” assets, will increase EFC by 20% of their value. Siblings who have different UTMA balances will thus have different EFCs, all other things being equal. </p>
<p>A UTMA/529, also knows as a custodial 529, is an account owned by the student but reported as a parent asset on FAFSA because all 529s are considered “parent” assets. Sibling custodial 529s are not reported at all on FAFSA. 529 accounts, like all parent assets, will increase EFC by a marginal rate of 5.6%. If 2 siblings have different custodial 529 balances, then the total reported parent assets will be different for each sibling.</p>
<p>Say child #1 has $50K in a custodial 529 and child #2 has $10K in a custodial 529. When the parent fills out child #1’s FAFSA, the parent will add that child’s $50K to the parent asset amount and ignore child #2’s custodial 529 balance. Child #1’s EFC is increased by $50K x 5.6%, or $2800. When the parent fills out child #2’s FAFSA, the parent will add $10K to the parent asset amount and not include child #1’s 529 balance. Child #2’s EFC will be increased by $10K x 5.6%, or $560. The total EFC for each child will be different by $2240.</p>
<p>Note that the rules are different for parent-owned 529s, but that’s a whole different discussion.</p>