Thanks for the response. Although it may a bit of a hassle to set up a custodial 529, it seems like it may be worth the trouble when you have multiple kids. Sure, there are some risks - loss of control of the money at some point and perhaps, if going to a CSS Profile school, the custodial 529 being treated as a child asset. On the other side, you could increase the aid received by siblings. For example, I have 3 kids. Kid #1 is not getting any aid, so no impact. Kid #2 is getting aid at a CSS Profile school. Kid #3 is in high school. I saved about $300K total. If I took $100K of child #3, and put it into a custodial 529, then child #2 would get about $5K more aid a year (parent assets, which is what that $100K would be counted as in my name, are assessed at around 5%). Even if I just want to put $50K in the custodial 529 for child #3, to be safe, it is still about a $2.5K/yr increase in aid.
Am I viewing this correctly?
BTW - That may be one reason why one might want to transfer money from a parent owned 529 to a custodial 529 that was mentioned in another thread.