quote:Originally posted by Goosegg:
Wog - while you don't want to sell the stock in your child's name, the college implicitly uses roughly 20% of the child's assets each year as part of the EFC. So, either you sell it or you cover that amount.
On the other hand, colleges expect a parent to use far less % of their assets each year. If only there was a way for the child's assets to return to mom and dad - as a whole the family unit is better off.
Wog, like Goosegg mentioned you could cover the amount from your other funds or paycheck, equal to what should be contributed from your child's account. I am far from a tax accountant, but if you give to a church or charity, you could "donate" part of your child's stocks to that charity each year, and then take that now available cash and use toward college costs. You would avoid capital gains taxes on the donated stock. We have successfully done this several times. It is a nice, charitable, way to avoid taxes on any gains. If the stocks are in the form of a mutual fund, check with your charity first, which you will have to do anyway to complete some paperwork for the transfer.
Not sure if the stock, if solely in your child's name, would complicate this?