Need help with FAFSA

[uuuuut]

The FAFSA asks me to include the total value of all my investments including trust accounts. I am the beneficiary of a trust, but it's a generation skipping type of deal that I don't really understand or bother to look into. It's money I probably won't see in at least 20 years, but because the person who set up the trust (my grandma) died recently I now receive annual statements on this account but don't have any access to the money or management of the account.

 

The account has a few beneficiaries, so the total balance of the account wouldn't be all mine.

 

I never put this money on my FAFSA before, but I'm wondering if I should have been, or if I only should now be putting the money on there because now I get the statement or if I can still leave it off. The whole thing is making me kind of nervous. They say that I can be fined up to $20,000 and get jail time for committing fraud, and I guess not understanding all this could result in me committing fraud by mistake.

 

Yes, I'm only just starting my 2005-2006 fafsa now - I'm a bit of a procrastinator.

[snowpuppy]

You didn't say if you are the parent or the student (dependent or independent) so I am guessing if this was grandma's asset, you are the student.

 

Assets on the FAFSA are only included in 2 situations:

 

1) You are required to file a 1040 long form & cannot file a 1040A(short) or 1040 EZ. There is a question on FAFSA that asks the type of tax return you file, if you say 1040, the next question asks 'are you eligible to file a 1040A or EZ'?

 

2) The parent has an 'asset protection allowance' for parents over age 48. This protection allowance allows parents to keep more of their assets available to them as they near retirement.