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Originally Posted by gakline
I'm not totally convinced on the 529 plan though. I read that some schools look at the income/ assets of the students when planning for financial aid. Since the 529 is in the students name, they will receive less aid or scholarships. Might be something to look into.
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You bring up a good point. I saw mention of this idea on my readings yesterday. It would seem that monies in DD's name might hurt her chances at financial aid, while monies in my name, or DH's (or both) would be treated differently. I think the 529 would be set up in our names, and not DD's, but I can't remember. Obviously, I have a lot of learning still to do.
IIRC, with the 529 other family members can gift significant sums of money without tax penalties to them. One of my grandmothers might appreciate that, knowing that she could give to DD now for higher education.