Other education savings options
There are other options to help you save for your child's education such as:
In Trust Accounts
A simple way to save for future education costs is to open a regular (non-registered) investment account as an "in trust" account. We recommend that you consult with your lawyer or tax advisor before setting up an "in trust" account to ensure it meets your needs and objectives.
Two features of an “in trust” account can make it an excellent savings vehicle for a child's education:
- Unlike RESPs, there are no restrictions on the amount you can contribute.
- Also, unlike RESPs, if the child does not pursue post-secondary education, the child may use the money for another purpose.
Family Trusts
Family trusts are formal trust agreements set up through a lawyer. Although certain preferential tax provisions have been eliminated in recent years, some advantages still remain and you may wish to discuss this option with a legal or tax advisor.
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