Does future inheritance affect FAFSA

[DocPit45]

What is the name of your state? SC

If my grandchildren are named as beneficiaries of a trust upon my passing, will that future inheritance affect the assessment of their current need on financial aid applications like FAFSA?

 

[PayrollHRGuy]

It shouldn't effect it at all. It is not an asset of your grandchildren until you die.

 

[HRZ]

GEnerally speaking if one is a benificiary of a trust and has access to the funds that's a killer for many means tested programs including student financial aid...the level of impact varies ...IF you pass....a future expectation is not a countable asset under FAFSA .

However there may be ways to structure giving them money for education with less of an impact against public sector aid under FAFSA ...for example 529 plans are counted differently . And due to some counterintuitive rules you could set up and fund 529s now , give them nothing in trust , and yet dip in yourself to the 529 is you so need ..with but a small penality on just the earnings component.

 

[Whoops2u]

A potential inheritance is nothing more than a whisper in the wind.

 

[HRZ]

The time to structure it better if maximum educational benefits are one goal is ahead of time

Both answers are correct...and I give credit to OP for thinking ahead