Trust Account Canada 2026 — In-Trust for Minor

Updated March 2026 · 10 min read

An in-trust account (ITA) — also called an "in-trust for" account — is an informal trust arrangement where an adult holds and manages money on behalf of a minor child. It's one of the most common ways Canadians save for children outside of registered accounts like RESPs. Here's everything you need to know in 2026.

What Is an In-Trust Account in Canada?

An in-trust account is an informal trust — not a formal legal trust established by deed. The account is titled "John Smith in trust for Jane Smith" (or "ITF Jane Smith"), meaning John is managing the money for Jane's benefit. In-trust accounts at banks are informally set up products; they are not formal trusts under provincial trust law. This distinction has important tax and legal implications.

Tax Treatment — Attribution Rules

The CRA's income attribution rules apply to in-trust accounts:

• Interest and dividends earned in an in-trust account for a minor are attributed back to the contributing adult and taxed in the adult's hands. You cannot reduce your taxable income by parking investments for your child in an ITA.
• Capital gains are generally not attributed back to the adult contributor — they can be taxed in the child's hands, often at a much lower (sometimes zero) rate.
• Attribution stops when the child turns 18 or when funds came from someone other than a parent (e.g., a grandparent's gift has different attribution rules).

How to Open an In-Trust Account in Canada

1. Visit your bank's branch and ask to open an account "in trust for" a minor.
2. Provide your own government-issued ID and the child's birth certificate or SIN.
3. The account will be titled "[Your Name] in trust for [Child's Name]."
4. At most banks, the adult is the sole signatory until the child reaches the age of majority (18 in most provinces).

Most Big 5 banks (TD, RBC, Scotiabank, BMO, CIBC) and discount brokerages (TD Direct Investing, RBC Direct Investing, Questrade) support in-trust accounts for both savings and investment purposes.

In-Trust Account vs RESP — Which is Better?

Legal Considerations — When Does the Money Belong to the Child?

Under common law, once money is gifted to a minor through an in-trust account, it legally belongs to the child. The trustee (adult) cannot take the money back for personal use. At age 18 (or 19 in BC and Nova Scotia), the child can demand full transfer of the account. This irrevocability is an important consideration — if you might need the funds back, an in-trust structure is not appropriate.

In-Trust Accounts for Non-Education Savings

In-trust accounts excel when you want to give a child money for non-education purposes — a down payment on a house, starting a business, or general life savings. Because there are no withdrawal restrictions (unlike RESPs), the child can use the funds for anything when they turn 18.

Frequently Asked Questions

Can I use an in-trust account to invest in stocks and ETFs?

Yes. You can open an in-trust brokerage account at Questrade, TD Direct Investing, RBC Direct Investing, or any discount broker. Capital gains in these accounts are taxed in the child's hands (not attributed to the adult), making growth investments particularly tax-efficient in this structure.

Does the child need a SIN to open an in-trust account?

Not always required at account opening, but for investment accounts and tax reporting, a SIN is needed. You can apply for a child's SIN at any Service Canada office at no cost using their birth certificate.

What if I'm the guardian, not the parent?

Guardians can open in-trust accounts in the same way as parents. Attribution rules still apply if funds came from a parent of the child. Grandparent contributions have slightly different attribution rules — consult a tax professional if large sums are involved.