Are there arguments against saving in a child's name?

Question

Quizplus · Accepted Answer

The Answer is Here are some compelling arguments: (a) money transferred to a child's custodial account is considered an irrevocable gift and the parents cannot get it back; (b) once the children reach the age stipulated by law - usually 18 or 21 - the money is theirs and they can use it any way they please. When a parent puts money into a custodial account, there is no guarantee the child will use that money for college; (c) parents cannot foresee future events that could upset even the best-laid savings plan; and (d) ownership of assets also has implications for college financial aid.
In calculating estimated family contribution toward college costs, the standard federal aid formula requires 20 percent of net student assets to be considered. Parents, on the other hand, contribute only 12 percent of their assets, after various allowances. The value of certain assets, such as tax-deferred retirement plans, annuities, cash value life insurance and home and farm equity, are excluded from the formula.

Are There Arguments Against Saving in a Child's Name