While it is true that assets in your child’s name could count against financial aid eligibility, so do all family resources, to varying degrees. A financial adviser can help you make decisions as to whether assets should be left in the parents’ names with the child as beneficiary or whether assets should be placed in the child’s name. Typically, assets in the child’s name would count at a higher percentage rate than assets in the parents’ names in financial aid formulas. Other considerations include taxation of the invested assets and whether the funds, if in the child’s name, are under their complete discretion or if they are limited to higher education expenses. We would like your feedback on this Personal Finance Frequently Asked Question.

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