But it also depends on how the trust is created. I have no idea how TrustEgg establishes the trusts, but many people set up trust funds for their children - but name the child as an alternate beneficiary, after themselves. So, if I set up a fund for my child - the trust fund would be mine until I died. Assuming I was still alive while my kid was at college, the trust fund would be mine and not hers.
From what I recall the parents assets can be used, up to a certain percentage, to determine what the child is eligible for. One way around this is to use a Roth IRA, since it allows you to take money out for college without a penalty and would not be used to determine FAFSA.
