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I set up two Custodial Accounts for my son's education. He just finished his freshman year of high school and will be a sophomore next year. Since the accounts could affect the amount of financial aid he receives I was thinking about maybe transferring the custodial accounts to a 529 plan. I know I would have to sell the two accounts and that would generate capital gains. This is my first son going to college so I don't know much about how financial aid is determined. I know they look at both the families income and assets and the college students assets(which include any custodial accounts). I don't know how they determine the eligibility though. I am married and we fall in the 15% income bracket but do have some financial assets. If we do decide to transfer the custodial accounts would it make sense to do it sooner than later as I believe they may look at the tax returns for the family and student for a couple of years before they start college? Your thoughts and suggestions are much appreciated.

Thanks for the help.

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