Student's Roth IRA included on college financial aid applications?

[Guest dwight]

We have 3 nephews (the oldest is 7) whom we'd like to help financially with college when they're 18. We are planning on opening taxable accounts in our name, and making a series of gifts when they graduate high school. Keeping the accounts in our name will exclude them from financial aid applications, although the redemptions will trigger tax penalties for us. We've been told that Roth IRA's in the student's name may not be required on a financial aid application. If true, this would greatly change our family support strategy. Can anyone set the record straight on this?