Federal & State Laws
UTMA/UGMA ACCOUNTS AND FINANCIAL AID CALCULATION
UTMA/UGMA investments, which have been converted to 529 college savings plans, prepaid tuition plans or Coverdell Education Savings Accounts, will be considered an asset of the parent, not of the student for financial aid calculations.
Parental assets are includable in the financial aid calculation at no more than 5.64% of their value as opposed to student assets at a whopping 20%. That can make a big impact in qualifying for aid.
Some states allow deductions for contributions to educational savings plans. Contact us for more information.
