<p>I have two sets of 529 accounts for my kids. One is a 529 - UGMA (Uniform gift to minors) the other are standard 529s. Both are held in our (parents) name.
Is there any advantage to withdrawing from one versus the other first or put another should their be any remaining funds is it advantagous to have it remaining in one type of account or the other? Thanks for any advice!</p>
<p>It looks like for 08-09 year on FAFSA, the UGMA is invisible, but 09-10 year it is treated for FA purposes like a parental asset and assessed at 5%. I assume no state tax on the income/gain if used for college, likewise federal tax, so income tax consequences are the same. In your state, does the kid have control of the UGMA at 18? There might be other rules applicable to your state 529. I would want remaining assets in a 529 I control so I could use it for other kids or me.</p>
<p>Thanks for the advise. In my state the child does own the UGMA funds at age 18. I like you idea of spending the UGMA funds first and then "controlling" any unused funds so they could be used for younger children's expenses.</p>