Which 529s to report?

Almost done with the FAFSA - tax info has been transferred from IRS, and the only thing we can’t figure out is how to address 529s. I understand that the student’s 529 must be reported as a parental asset, but what about a younger siblings 529? Do you also report that as a parent asset, even though it won’t be used for the older sibling?

Thanks in advance!

Yes. They are all counted as parent asset as one can easily change beneficiary of 529. It does not matter if it is for you or your sibling.

Does the younger sibling own the 529?

Mom is listed as the account owner on both student’s 529s. So I guess both of those are parental assets? Darn.

Any 529s owned by a parent reporting financials on the FAFSA are reported regardless of who is currently named as the beneficiary. A 529 where a sibling is the account owner is not reported, because the beneficiary cannot be changed and the funds in the account are not available for the reporting student. A 529 account that currently names a sibling as the beneficiary but is owned by someone other than a parent reporting financials on FAFSA (i.e., a grandparent or a non-custodial parent) is also not reported as an asset.

Edited to add: many 529 plans allow for a change of ownership. If your plans allow this, you could consider transferring the sibling account ownership to the siblings. A parent (or any other adult) would need to be appointed as account custodian until the sibling/owner/beneficiary reaches the legal age of majority for your state and takes over control and administration of the account. Upside: the sibling 529 accounts are not reported as a parent asset on the FAFSA, thus potentially decreasing EFC and increasing need-based aid awarded. Downside: upon reaching the legal age of majority, the sibling/owner/beneficiary is entitled to complete control of the account. Maybe a new BMW or a luxury tour of Australia sounds more inviting than a college education.