UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Re: saving for college Date: 7/9/1998 2:06 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Greetings, Conifer, and welcome.

<<I started a custodian account for my niece when she was born in December '94, with education in mind. Now I hear and read that such an account could prevent her from receiving financial aid, which she likely will need. How can I resolve such an issue ?
Some relevant facts: the account now has $4000. and it probably will receive about $800. to $1000. per year. It is in New Perspective mutual fund.>>

With the money that's currently in the account, nothing. By law, that sum must be used for the exclusive benefit of the child. In most states, the child comes into full control of the account at age 18. Students are expected to use up to 35% of their assets each year for schooling in determinations for federal aid/grant/loan programs. Hence, a child with substantial assets may very well discover he or she will NOT qualify for such a program. Parents have a much lower limit, somewhere around 6% of assets.

IMHO, if you are concerned with a child qualifying for financial aid, then future contributions should be into your own or a parent's account so they remain out of the child's name. If the child doesn't own the asset, it won't be counted against that child in aid determination.

Regards….Pixy

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
TMFDeej's CAPS Blog

Activist Investors Unlocking Value at LSB Industries?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement