Hi, I’ve looked through the forums and can’t seem to find a conclusive answer (and maybe there isn’t one). Here’s my question, my D has a trust account co-administered by myself and the Surrogates Court, the funds in the account are the proceeds from her deceased mothers estate (we’re divorced). Since the account is controlled by the Court would it be counted for FAFSA/Profile? It seems that court administered trusts fall into the No category but it isn’t immediately clear to me. Thanks in advance.
Are there court-ordered restrictions on what the trust funds can be spent on? Or, to put it another way, would the court allow the trust funds to be spent on college expenses? If the answer to that question is “yes,” I think that the trust funds must be reported on FAFSA and Profile as a student asset.
No restrictions, simply that the funds aren’t available until she’s 18.
I believe that yes, it would be considered as part of the FAFSA. The only exception seems to be if the trust is restricted by court order. That isn’t what’s happened here. Not that it’s really relevant, but I think you’d be hard-pressed to find a Surrogate court judge who wouldn’t assent to using the funds towards higher education. Will she turn 18 during the school year?
@kelsmom any help with this?
I agree with this, and the age restriction is immaterial. The classic example of trust funds not needing to be reported for FA purposes is when the funds were provided because of some kind of illness or injury, and a court restricts use to medical expenses. If the funds are available for college expenses, they will need to be reported on FAFSA and Profile.
Thanks all.