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
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar<