[WSBAPT] Trusts for College Financial Aide purposes?

[Nick Pleasants]

Laura,
What an interesting question! I think the answer will depend on FAFSA procedures. Just like the POMS has includable and excludable resources for Medicaid, I believe FAFSA has very specific regulations on that. StudentAid.gov<https://studentaid.gov/articles/fafsa-for-parents/> states that Trust Funds are "investments" that must be disclosed on the FAFSA. However, apparently Retirement Accounts and Life Insurance are not "investments"?! That seems like a loophole you can drive a semi truck through. Perhaps I should invest in a single premium whole life policy when my kids apply to college.
Best,
Nick


Nicholas Pleasants | Shareholder

[OseranHahnAttyatLaw 8]

11225 SE 6th Street | Suite 100 | Bellevue, WA 98004
Main: (425) 455-3900 | Fax: (425) 455-9201 | E-mail: npleasants at ohswlaw.com<mailto:npleasants at ohswlaw.com>

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________________________________
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Laura Latta <laura at lauralatta.com>
Sent: Tuesday, December 9, 2025 3:27 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Trusts for College Financial Aide purposes?

Hello Listmates & Happy Holidays!
I was recently asked whether trusts can be used to assist families (who might not otherwise qualify) receive federal college financial aid? (Similar to a medicaid trust, but for financial aid?) I don't do this work (nor am I considering doing it), but I would be curious to know if this is something that is out there and if so, is it legitimate?
Warmly,
Laura

Laura Latta
Law Office of Laura Latta PLLC

she/her

Phone (206) 841-2344

www.LauraLatta.com<http://www.LauraLatta.com>

4010 Lake Washington Blvd. NE Ste. 202

Kirkland, WA 98033



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