hard · Certified Financial Planner General Principles
David Ibarra is concerned about the impact of assets on Mateo's future financial aid eligibility. Mateo currently has $22,000 in a UTMA and Elena has $85,000 in a parent-owned 529 plan.
How will these assets be assessed under the federal financial aid formula?
- The $22,000 UTMA is assessed at 20%; the $85,000 529 is assessed at a maximum of 5.64%.
- The 529 plan is assessed at 20%, but the UTMA is assessed at 5.64% due to the custodial nature.
- Both assets are assessed at 5.64% because Mateo is still a dependent minor.
- Both assets are assessed at 20% because the intended beneficiary for both is Mateo.
Sign up free to see the explanation and track your rank →
More Certified Financial Planner General Principles practice
- What is the maximum amount that can be sheltered by the annual gift tax exclusion if the…
- For 2026, which portion of their interest is deductible as an itemized deduction?
- What will happen to their bond's true market price compared to the price predicted by…
- Which has a duration of 7.2 years. If interest rates rise by 100 basis points, which of…
- Based on the 2026 current IRS figures and SECURE 2.0, which statement is correct?
- The Hartwell household is reviewing a bond portfolio. If… Which concept explains this…
- The Fenwick family owns a business with 5 equal partners… How many total policies are…
- Which of the following is brought back into his gross estate under the 3-year lookback…
All General Principles questions · Certified Financial Planner study guide · Certified Financial Planner glossary · Certified Financial Planner flashcards