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It's almost certain that putting money in the child's name will serve to reduce their financial aid package. Financial aid, since the system was invented, has
by jellicle 14y ago
It's almost certain that putting money in the child's name will serve to reduce their financial aid package. Financial aid, since the system was invented, has always counted assets in the child's name as being highly available to meet college needs, while parental assets are less available. This is going to be true 18 years from now even if the system is tweaked in the meantime.
Putting money in a trust fund for your child will reduce their eligibility for financial aid, full stop, no doubt about it.
- Bricejm 14y agoJeff - Founder/CEO It does reduce financial aid, but only 20% of the child's assets are included. TrustEgg assets also don't have to be used for education, while a 529 plan would assess a 10% penalty for non-education withdrawals. Having the assets in the child's name also protects the assets from the parents, and parents creditors, which is necessary when taking deposits from other family members.