We have a college savings account through Hartford for my son. It is a custodial account with my husband as the owner. Today my son turns 18 so we can no longer contribute to this account. We are going to open a 529 with my husband as the owner and my son as the beneficiary so we can continue our monthly contributions. Here’s my question and it concerns FAFSA. I read your article in the Huffington Post. I know assets in the parents name are better that in the student’s name. Should we rollover the custodial education account into the 529 so it will be considered our asset on the FAFSA? If we don’t roll it over, is the Hartford account considered my son’s asset? Thank you for your help.
Terry Says: Yes, do a Rollover 529 account — and do it right away! A custodial account has a huge impact on college financial aid. (Not to mention that when your son turns 18 — in most states — the age of majority, then the money is his to do with whatever he wants!) If you’re filing FAFSA in January, you want this account out of your son’s name when you have to disclose all assets.