<p>My mother passed away and left me and my siblings a house that we can't sell until i'm 25. Right now I have no money and really need the financial aid.
Do I have to report the house? If so, how much do I say I own? Will colleges actually find out about this? It's not in my name.</p>
<p>Do you LIVE in this house? </p>
<p>If not, how many siblings do you have? If there are four of you total, your share is 1/4 of the value of the house.</p>
<p>If your mom willed the house to you, I’m thinking the deed WOULD have your name on it…or should. OR it could be in a trust. Is there another family adult who can explain the house ownership to you?</p>
<p>Need more information.</p>
<p>Who or what is the legal owner of the house?</p>
<p>If it’s a what (Trust), who are the trust beneficiaries and how are the trust assets divided?</p>
<p>The deed of the house was in my mothers name. Her fiance was named trustee and is to take hold of the asset until I turn 25. I live with my dad now, not in the house in question.</p>
<p>OK…since the house is in a trust with a trustee, it is my understanding that you MUST list your share of the value of this trust as an asset on the FAFSA because you are a beneficiary of this trust. </p>
<p>So…if there are four of you, your share would be 1/4 of the value of this house (selling price minus any loans on the house). </p>
<p>I could be wrong about this, but when we had a very similar potential trust situation, this is what we were told when we contacted the FAFSA helpline. </p>
<p>The college and federal government should not be expected to give you need based aid to protect an asset (even if it is a future one that is not accessible to you now).</p>
<p>I know there is a large mortgage on the house, but does that matter? How do I prove the value of the home? Do I just write down the last assessed value and divide it by four? I’m a first gen. student, so I really have no clue what I’m doing so I thank everyone for all the help!</p>
<p>You need to figure out what you could sell the house for NOW. Perhaps a real estate agent could help you with this number. Then subtract the amount of the mortgage (so yes…the mortgage amount DOES matter). Whatever is left divide by the number of siblings who are beneficiaries of the trust. That would be your share.</p>
<p>BUT. With trusts, you would be very wise to know all of the provisions of this particular trust. the provisions of THIS trust could negate what I am saying to you. Was there a trust lawyer who handled this, or an estate lawyer who dealt with your mom’s estate?</p>
<p>In addition, who is paying the mortgage on this house…and the taxes and insurance? Is it rented?</p>
<p>Ask if there was a recent appraisal done on the house. Subtract the amount of the outstanding mortgage to get the total asset value. Divide by the number of beneficiaries to get the value of each beneficiary share (assuming that all beneficiaries have an equal interest).</p>
<p>However, as thumper1 cautions, the trust document may spell out an arrangement that’s not so simple. Someone with experience in these matters should look at the trust document and advise you.</p>
<p>The only thing that has my name on it is the will. My Aunt is currently living there and paying the mortgage on it. Could I just list it as my primary address and avoid this whole thing?</p>
<p>If you do not live in the house, and you reside with your father elsewhere, then your father’s address is your primary residence.</p>
<p>I just want to add…you could be doing this song and dance for NO good reason. Your EFC is largely based on your parent income. If this property has a huge mortgage, it could have almost no effect on your aid. For example, if the house is worth $200,000 and has a $150,000 mortgage, Your share (if 1/4) would be $12,500. </p>
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<p>If you are a beneficiary of the trust, then you are named in the trust document. And if the house is a trust asset, that means you have an “interest” in that asset.</p>
<p>This might help: <a href=“Trust Funds and Financial Aid - Finaid”>Your Guide for College Financial Aid - Finaid;
<p>The best answer is not to lie, you don’t know when and how it will catch up with you. “Will they find out?” considering they could impound your computer and find you posting here about it, that’s a no-brainer.</p>
<p>You’re right. I just don’t see why I would have to report money that I can’t even access for another eight years!</p>
<p>The reason you have to report assets you don’t have access to is that even though you don’t have access to that money today to spend on college, it is money that you could, for example, use to pay off loans when you get access to it. Someone who is otherwise in exactly the same financial situation as you but doesn’t have an asset they’re going to have access to in 8 years, isn’t really in the exact same financial situation as you, even though it may feel like it today. </p>
<p>Is there a difference in how revocable and irrevocable trusts are viewed?</p>
<p>Polka dot, as I mentioned above, need based aid is not provided to protect an asset that you can gain access to even if it is in the future. You are currently a beneficiary of that trust. At some point, you will have access to this.</p>
<p>I would still urge you to get an understanding of how YOUR trust is set up. You need to know the provisions of this trust. You also need to be certain that the trustee is protecting this asset for the beneficiaries. Trusts can be “funny” things with provisions in them. You need to be informed about this. For example, do any of the other beneficiaries gain access prior to you? Is there a provision for the current tenant to stay in the house? Once all beneficiaries are old enough CAN you sell this property? </p>
<p>But in the meantime, you DO need to list YOUR share of the value of this trust. Remember…it is the total value of the house, minus the remaining mortgage loan divided by the number of beneficiaries. In a post above,you say this house has a HUGE mortgage. You share might end up being a small amount.</p>
<p>We actually were asked (which was nice…because folks setting up a trust do NOT have to get your permission to be included) if we wanted to be part of a family real estate trust. It had a very HIGH value…no mortgage. We graciously declined.</p>