<p>In the FAFSA instructions the definition of "investments" includes, among other things, "trust funds". I currently am the beneficiary of a trust that is currently worth about $75,000 and pays a quarterly dividend of about $250 or so (it varies). I do not have access to the principal of the trust only the interest (or dividend). Reporting the value of this trust makes a HUGE difference in my family's EFC. Why do I have to report the full value of the trust when, for all practical purposes, I don't have access to it to pay bills? Is it possible that only the $1,000 I actually receive each year is the amount to be reported? Thanks.</p>
<p>Hmm, this is a complicated one. I supposed, if you have to report the value, "they" would content you will get the principal someday and should not be able to shelter it, take loans now & pay them off when the trust principal is available.</p>
<p>The only trust questions I have seen answered was that the trust is the asset of the person under whose social security number it is reported for tazx purposes. If this trust is under the trustees SS# & not yours, then it might be their asset, allowing it to move from student asset assessed at 35% to parent asset assessed at a lower %</p>
<p>I appreciate your thoughts and comment.</p>