What is an in-trust for account?

In-trust for accounts

When it comes to saving and investing for your children’s future, one strategy that many find helpful is opening an in-trust for account. This type of account has some unique benefits and may be a good fit for you to help in achieving your financial goals. 

Check out this infographic to learn more about ITF accounts.

An in-trust for (ITF) account is a way for parents, grandparents and other adults to set aside funds for minor children.

Why open an in-trust for account?

  • Investing for the future: A way to invest money on behalf of a minor and help them build wealth over time.
  • Tax benefits: Capital gains realized may be taxed in the hands of the child which is typically lower than the adult’s tax rate.
  • Control over investment decisions: Decisions over how the money is invested are made by the adult on behalf of the beneficiary.
  • Wealth transfer: Can be used as a way to give an inheritance. 

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