Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
If you can trust the grandparents (not everyone can), then I would give them the money to put into a 529 plan that they own with your child as a beneficiary.
Grandparent owned 529 will not count as an asset on FAFSA- but a distribution from them will count as untaxed income, so best to use the funds from a grandparent-owned 529 later in their college career so that by the time the "income" would show up, they aren't doing FAFSA anymore.

If you want to stick with Coverdell - or at least continue to put money in it - your child can contribute to their account with money you've given them. - Assuming they don't have over $95k in adj gross income :)
Print the post  

Announcements

Paying For School Guide
Trying to Tackle Tuition? The Motley Fool's Guide to Paying for School will help you fight those rising education costs.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.