And if you are older than 45, you will get an asset protection allowance as well, presumably because you need to use your savings for retirement. Your child's assets are a different story. Any money in your child's name is assessed at a 35 percent rate. That's why it almost never pays to put savings in your child's name if you want to qualify for aid. And if you are considering opening a 529 savings account, be careful.
Money is invested according to a strategy and run by a professional money management firm.
When you withdraw the money, however, it must be claimed as income. And that can affect your financial aid package. If you think you may be eligible for aid, you don't have to skip the accounts altogether. Just make sure you only stash enough for the final year or two in the 529 account. Time Inc. All rights reserved.