Reply to Open two 529s for two kids?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Keep in mind that all accounts a parent has count against the financial aid for each child. For instance, we have two accounts - one for each kid - but the assets in both accounts counted against the oldest in his financial aid calculations. That's because the beneficiary can be easily changed. Because we don't have enough in oldest child's account to fund the entire four years, we are going to tap his brother's account so that is reduced and brother eventually qualifies for more aid.

[b]Also, do NOT put the 529 in your child's name. It counts against them more in financial aid considerations than when it's in your name. Ideally, your child should have NO money in their name when they apply for aid. [/b][/quote]

By this you mean don't make them the [i]owner[/i] of the account, but it's ok for them to be the beneficiary, right?[/quote]

Yes, make them the beneficiary, but not the owner.

Also, if grandparents open a 529 account then disburses to that child, the entire amount counts as income for the child, which hoses financial aid. Have grandparents contribute to the account the parent has set up. OR, have grandparents wait to give a big sum during the senior year after the last year of financial aid has already been calculated.[/quote]

I don’t understand this. Why would the entire disbursement count as income for the child if the grandparents set it up as opposed to the parents? Why does it matter who sets it up as long as the child is the beneficiary and not the owner?[/quote]

Because income of the student is reduces need-based eligibility more than the assets of the parents.

This explains it pretty well: 
https://www.washingtonpost.com/news/get-there/wp/2018/05/24/should-grandparents-open-a-529-savings-plan-to-help-with-college-costs/?utm_term=.3d0f60d637bc
[/quote]

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