Print format Web format
In-trust

An in-trust account is a great way to save for a child's higher education. With an in-trust account, an investor (the "trustee") manages money (or other assets) for a child (the "beneficiary") until the child reaches the age of majority. At that point, the trustee can make any necessary arrangements.

There may be tax advantages too. If properly structured, your child may pay taxes on growth in an in-trust account (capital gains). And because your child will probably have a lower taxable income than you, he or she will pay little, if any, tax.

› Q&A on in-trust accounts

Good things to know about an in-trust account

  • You can contribute as much money as you want
  • All capital gains may be taxed in the hands of the child
  • You, as the donor, are taxed on all income including interest, dividends, foreign, and other income if earned while you are a resident of Canada during the applicable year
  • If funds for an in-trust account come solely from Child Tax Benefit payments or an inheritance, income is taxed in the hands of the child
  • Money stays in the hands of the child if he/she decides not to pursue a post-secondary education