2024.12.27 Estate Planning Meets FAFSA: Smart Strategies for Asset Ownership
2024.12.27 Estate Planning Meets FAFSA: Smart Strategies for Asset Ownership When preparing for college expenses, understanding how financial aid and estate planning intersect can make a significant difference. This article will break down the essentials of how asset ownership influences aid eligibility, offer actionable strategies to increase the chances of receiving aid, and highlight estate planning tools that can protect your wealth while optimizing support for your child’s education. FAFSA and Asset Ownership: The Basics The FAFSA, or Free Application for Federal Student Aid, evaluates a student’s financial need based on several factors, including family income and assets. However, not all assets are created equal in the eyes of FAFSA. The way those assets are owned—whether by the parent, the student, or even a third party—can have a big impact on financial aid eligibility. Here’s the key: FAFSA assesses up to 5.64% of parent-owned assets when calculating the Expec...