RESP or In-Trust Account: Which Is Best For You?

Trying to decide which works best for you? Make the comparison for yourself:

Comparing:	RESP	In-Trust Account
Annual Limit	None	Lifetime Max. $50,000
Purpose	Post-secondary education only	Any purpose
Grant	CESG 20% of annual to a max. $500 per beneficiary/year.	Lifetime CESG max $7,200
Payout	Subscriber decides how much and when	Trustee controls assets until beneficiary reaches age of majority when control is transferred
Withdrawals	Any time, tax-free. If beneficiary does not attend post-secondary, up to $50,000 may be transferred into subscriber's RRSP	Must be used for child's benefit
Taxation	Not tax-deductable; income received from growth portion of plan as well as CESGs reported to beneficiary as income on T4A when withdrawn	Not tax-deductable; tax planning opportunities exist

Start Your Education Savings Plan Today!

Whether you choose an RESP or an in-trust account, remember that saving for your child's education is the primary goal. And it's never too early or too late to put money aside for one of the most important expenses you'll ever face. To find out more about how to gain value from setting up a Horizon Custom Education Savings Plan and/or the CESG, call your Horizon advisor.