Phil Schuman wrote:
- quote -

With assets of at least $35K, you're right, your son will most likely
not qualify for any need-based financial aid. He will be expected to
contribute most of it to his own education, fortunately that amount
should get him through the first two years at all but the most expensive
private colleges, longer at a public university.

There might be a small benefit to moving it to a 529 account, especially
if your son has a lot of earned income. His investment earnings on the
amount for the next few years can be tax-free.

- quote -

How would that ease any bookkeeping? You have to turn it over to him
when he's eighteen anyway, so you want to keep it separate.

- quote -

Why not? Are you saying "small gifts" grew to $35K over 10 or 15 years
only due to interest earnings? (hard to believe). At the very least
your son should have been paying tax on his annual dividends and capital
gains distributions, if any. And if they were high enough, they were
taxed at your rate. Even if he has a capital loss, he can use that to
offset his ordinary income to the tune of $3,000/year until he uses it up.

If the investment includes unrealized capital gains, he must pay tax in
the current year to take it out to invest in a 529 plan.

-Mark Bole

We have a small Schwab custodial account for our son
that we started years ago for gifts, etc
that has grown to just about $35k.

He is now 16....

Since the amount is so small,
does it make sense to roll it into a 529 account
as it is a small percentage compared to our total portfolio
and therefore doesn't help a lot
with the "his" vs "ours" for any kind of college aide.

Lastly - since the "his" vs "ours" is so small,
what about just liquidating the account for ease in book keeping.

Any cap gains are not an issue in the discussion.