Would it be better for me to own their stocks in my name before they are ready to go to college? They are preteens at the moment so it will be quite some time from now. So my questions are: should I convert (and is that legal) their minor accounts (stock) to my name to avoid it being held against them when they apply for aide for college? And when should I convert them over (wait until they are in High School or do it now???)? Thanks!
2007-02-20 03:44:01 · 2 answers · asked by J Tap 1 in Education & Reference ➔ Financial Aid
Yes, it will be held against them from what I have heard. A higher percentage of savings is held against a minor compared to a parent or adult. The best thing is to talk to a tax advisor and an investment planner (can be two seperate individuals) before taking any action.
2007-02-20 04:09:18 · answer #1 · answered by dawncs 7 · 0⤊ 0⤋
Yes, you are on the right track. When they file a FAFSA form, which tells their income and the gov't decides how much they should pay by themselves, it will hurt them a lot because the govt expects students to use practically all of their assets to pay for school, while they expect parents to use less. You would be saving money by moving the stocks into an account in your name. When the FAFSA formula is figured out the govt will give you more grants if it is in your name. One way to save money is to put the stocks into a student tuition account, which is tax free. You would have to know the specifics on when you can withdrawal and put it in your name though because I believe you can't take out the money until they are 18 or so. I don't believe it matters when you change the stocks into your name as long as it is done before you fill out the FAFSA during their sr year of hs.
2007-02-20 04:40:01 · answer #2 · answered by Matt 2 · 0⤊ 0⤋