<p>So my daughters maternal grandfather set up as uniform gift to minors act account for her10 years ago.
HOWEVER, he has it in a trust that HE still controls until my daughter hits 21 (NOT 18). This is pretty clearly something that my daughter must report as HER asset under question 44 of fafsa .
Correct?
I then assume that the schools will "expect" that money from that account will be used as if my daughter owned it already even though she CANNOT, by law, actually spend that money on her own.
What if my father-in law refuses to release the money?
Can I assume the colleges response will be to simply gap her that amount ie take the attitude "so borrow it on whatever terms you can get since you will get it back at 21 anyway".</p>
<p>Yes, you must report the funds as hers. Colleges will assess that amount at about 25-30% available to pay for college.</p>
<p>You have two choices in that scenario:
1) You can pay the money and have your daughter pay you back when she gets control of the funds.
2) She can take out a loan, defer the interest payments, and pay back the loans once she gets the funds. </p>
<p>In either scenario, the money will be used to reduce her indebtedness once she reaches 21.</p>
<p>Thanks Chedva. That is the answer I anticipated.
If anyone disagrees please post.</p>