<p>My two daughters have small trust funds that were set up and financed by their aunt, who has no children of her own. They cannot touch the funds until they are 21 and, needless to say, my wife and I have no access to the money. Is it necessary to report this information on the FAFSA and PROFILE?</p>
<p>I believe they are reportable anyway, which is why trusts aren't always a good idea from a financial aid perspective (although there are many other good reasons to establish trusts). Does the trustee have discretion to spend $$$ for the kids to go to college?</p>
<p>Muffy -- The Trustee does not have any discretion to the best of our knowledge. The fund was set up so our daughters would have the resources to put themselves through graduate school once the parents exhausted their financial resources putting them through college.</p>
<p>Here's an internet link that might be useful. But usually trusts are assets of the beneficiary student for FA purposes even if the student has no control over the $$$. It might not be an asset of the beneficiary student for creditor purposes, though.</p>
<p>Oh, this bookmark doesn't exactly work, you have to search.</p>
<p>They are assets of the children's which colleges see as something they can borrow against.</p>