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If you open it as custodial, then the money is your son's money.

1. When he hits the age of majority, he will control withdrawals, including choosing to withdraw for non-educational use, with tax penalty, and buying fast cars or women, or any of a host of other things.

2. If you might at all be expecting need based aid, the federal methodology uses 35% (IIRC) of chlild's assets and 5% (IIRC) of parents assets in calculating EFC (Expected Financial Contribution) toward school. If your parents owned the account, it would not even be reported on the FAFSA, and the account you own will count as a parent asset.

Good call outs. Thanks

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