2026–27 Parent Asset Rules – What Counts vs. What’s 100 % Exempt
100 % EXEMPT (Not Counted At All)
- ✔ Family farms (if family lives on it or operates it)
- ✔ Small family businesses (≤100 full-time employees)
- ✔ Primary home equity (any value)
- ✔ All retirement accounts (401k, 403b, IRA, pension, annuities)
- ✔ Grandparent-owned 529 plans
- ✔ Life insurance cash value
- ✔ Personal possessions, cars, boats
STILL COUNTED (Reduced Rate)
- ✖ Non-exempt investments (stocks, bonds, mutual funds)
- ✖ Second homes / rental properties
- ✖ Cash, savings, checking accounts (above protection allowance)
- ✖ Non-family business net worth
- ✖ Large commercial farms not family-operated
- ✖ Student-owned 529 plans & UGMA/UTMA accounts
Asset Protection Allowance (2026–27)
| Older Parent Age | Protected Amount (Married) | Protected Amount (Single) |
|---|---|---|
| 45 | $18,900 | $7,600 |
| 50 | $27,200 | $10,900 |
| 55 | $37,100 | $14,900 |
| 59 | $45,300 | $18,200 |
| 65+ | $59,800+ | $24,000+ |
Real-Life Impact Examples
Iowa Farmer
Farm worth $1.8M → previously added $90K+ to EFC
2026–27: 100 % exempt
→ +$48,000 aid
Texas Trucking Company
85 employees, $2.1M net worth → now fully exempt
→ SAI drops from 28,000 → –800
Retired Parents
$850K in 401k + $400K home → both 100 % protected
→ Zero asset penalty
Bottom line: In 2026–27, most middle-class and rural families now have ZERO asset penalty for the first time ever.