And you are receiving less in federal grants, work-study and subsidized loans.
A Uniform Transfers to Minors Act, or UTMA, account is a newer version that the states now use in place of the UGMA.
Yes, you can convert your grandson's UGMA to an UGMA-529.
Can I open the 529 with my grandson's UGMA money before he turns 18?
I would put myself as the owner and list him as the beneficiary ...
Parent assets top out at 5.64 percent of the market value of the total investment, while student assets are assessed at the much higher rate of 20 percent. If the current CD in his UGMA account is worth ,000, your grandchild's EFC is increased by ,000.
So, your family is paying more out of pocket or with unsubsidized loans.
I've heard that I can convert the UGMA for him to a 529 plan.
I'd like to do this through a 529 plan with a CD option since my current UGMA is a CD.
I'd like to do this so he or his parents will be able to get more financial aid money ... -- Ruth ANSWER: Dear Ruth, First, for my readers who don't know what an UGMA is, it refers to the Uniform Gifts to Minors Act.It allows money or other assets to be given as a gift to a minor child with a custodian staying in charge of it.