Liquidating utma

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Instead, it is reported as a parental asset at the lower 5.64% maximum parental rate.

If you were to use the UGMA/UTMA account to pay for expenses incurred for his benefit, instead of paying for those expenses yourself, you will have more money to fund a 529 account under your own ownership. Beginning with the 2006-07 school yearbut ending with the 2008-09 school yearyour child's UGMA/UTMA 529 does not have to be reported on the federal financial aid application (FAFSA).Parents and students who are currently completing the FAFSA and learning about financial aid may be kicking themselves for not having a better plan in place to pay for college.When it comes to college costs, a little planning can go a long way.The treatment of an UGMA/UTMA 529 changes beginning with the 2009-10 school year, but is still beneficial.The account is reportable on the FAFSA, but not as a student asset assessed at the usual 20% student rate.

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