College Savings
Would it make sense to move a UTMA I have for the kids to a 529 Plan? It doesn’t look like we will qualify for any FAFSA funds, however I believe some schools use this info when determining how much parents should pay towards college tuition. Thx!
Terry Says
Yes, if you are expecting any financial help from a college, they will ask you to fill out the FAFSA (Free Application for Federal Student Aid). And money in a “custodial” UTMA account weights 7x more heavily in the financial aid formulas — whether for Federal student loans, parental loans or grants. And that’s not to mention that at the age of majority — 18 in most states — the money belongs to your child, who might just decide to buy a car with it!
Here are some tips and details about making this transfer in an article at SavingforCollege.com.
