My son will be starting college in August 2000. He has 2 custodial mutual fund accounts. The larger one is worth approximately $44,000. with his grandfather as the custodian. The other, worth about $2,800,has myself(his mother) as the custodian. He is turning 18 on April 7th,2000 and at the time will be able to assume ownership of those accounts. I was told by a college financial planner that funds in his name would be assessed at a rate of 35% towards getting financial aid, and funds in our name would be assessed at 5.9% after a 28,700 asset protection. Obviously, it is better for the funds to be in our name. I was told that once he has ownership, he can gift the ownership. The larger one he was planning on taking out 20,000 to cover the first year tuition, and transferring ownership of the balance to us; and then each year we would take out from there for his tuition. We were told by our accountant that's the only way to avoid the sale of the stocks. I'm in the process of filling out the FAFSA form (the one the government requires to apply for financial aid) I'd like to know if this is a good plan financially, as far as capital gains when the money is taken out before he transfers it, and if we take some out. Thanks for any advice!