In-Trust Accounts

Description
An in-trust account is an "informal trust" set up with a financial institution to invest funds for a minor. A donor contributes to the plan for the beneficiary. A trustee (who can be a different person than the donor) manages the funds for the beneficiary. In-trust accounts are generally used to save and fund post-secondary education.

Objective
To provide an account that individuals can use to invest funds for a minor.

Suitability
An in-trust account is suitable for anyone who wants to set money aside for post-secondary education expenses.

Features

• Contributions: There is no maximum contribution level.
• Government Assistance: The government does not match any contributions made to the plan.
• Taxes: The account does not grow tax-deferred. Income and dividends are taxed in the hands of the donor; capital gains are taxed in the hands of the beneficiary, if properly structured. Once the beneficiary reaches age of majority, 18 or 19 depending on the province, the funds are taxed in the hands of the beneficiary.
• Transfer to Beneficiary: Once the age of majority is reached by the beneficiary, 18 or 19 depending on the province, the funds are transferred to the beneficiary's account. He or she now has control over the funds.

In-Trust accounts are currently not available in Quebec.

For more information, please contact your Edward Jones financial advisor*.