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Other ways to save for your child's education
If you're looking for alternatives to an RESP, you may wish to consider other savings options to provide additional flexibility and growth potential. (Government grants do not apply.) Choose from:
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
A family trust is a trust arrangement typically established by a formal trust agreement drafted by a lawyer. Although certain preferential tax treatment for such trusts has 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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