Trust Fund Calculator

This trust fund calculator determines the net present value (NPV) of a trust fund to help you value the trust fund for reporting it as an asset on the FAFSA.

Enter some quick information below so we can calculate.

info icon vector The average expected future inflation rate
info icon vector Current balance of trust fund.
info icon vector How many years are left until trust expiration?
info icon vector Annual Interest Rate
info icon vector The percentage of amount given to child at trust expiration.
info icon vector Percentage of anual interest given to child.
info icon vector Fixed amount given to child at trust expiration.
info icon vector Fixed anual amount given to child every year.

Yes, any amount in a trust fund must be reported as an asset on the FAFSA and will reduce a student’s eligibility for need-based financial aid. This includes grants, federal student loans and student employment.

These trusts are reported on the FAFSA: Blind Trusts, Charitable Trusts, Crummey Trusts, Insurance Trusts, Living Trusts, Medicaid Trusts, Section 2503(c) Minor’s Trusts, Special Needs Trusts and Spendthrift Trusts.

Some trust fund beneficiaries try to claim that the trust fund should be treated the same as a gift from the grantor, which is not guaranteed to occur. But, a trust fund is different, in that it is usually established as an irrevocable gift. The discretion provided to the trustee and restrictions on access to the trust are irrelevant. Even when a trust fund is revocable, the baseline assumption is that the money will be distributed as provided for in the trust document.

If a trust has multiple beneficiaries, the beneficiaries are treated as having equal shares in the trust, unless the trust specifies otherwise. A trust fund can specify a different split, such as one beneficiary receiving two shares and the other beneficiary receiving one share. It is much more common, however, for a trust to specify an even split.

If the beneficiary of a trust will receive all of the income and principal from the trust, the value of the trust is just the current value of the trust’s assets. If ownership of the income and principal is split, one must calculate the net present value of all future payments from the trust to the beneficiary. The net present value calculates how much you would need to invest now in a risk-free investment, to cover the cost of all future payments to you from the trust.