ScholarShare 529 ownership change?

[wanaberetiree]

I realized that 529 accounts in any other then parents names may jeopardize aid possibility for my grandson, considering change of ownership.

My account is with California ScholarShare 529 into my family trust name.

Wonder if anybody has done this an has any suggestions?

Thx

 

[kaneohe]

https://www.savingforcollege.com/article/workarounds-for-grandparent-owned-529-plans

still have 529 for DGD........counting on the "spend last" theory.

 

[SecondCor521]

I realized that 529 accounts in any other then parents names may jeopardize aid possibility for my grandson, considering change of ownership.

My account is with California ScholarShare 529 into my family trust name.

Wonder if anybody has done this an has any suggestions?

Thx

Bolding added.

Why do you think that? I've filled out FAFSA several times and find nowhere does it ask about non-parental 529's. I've also read numerous web pages on the topic and they all seem to think that non-parental 529's should not be listed on the FAFSA.

Distributions from non-parental 529's do show up as non-taxable income on the FAFSA. Using them last, along with the new prior-prior year rules, should help with that problem. Another option, which I am investigating now, is whether transferring ownership from the non-parent to the parent prior to distribution also gets around this issue. I would think it would but don't know for sure. In my state, 529's can have the guardianship changed fairly easily I believe.