Saving for an Education:
Whether you plan to send your children/grandchildren to private school or are saving for a post secondary education, there are many options available to assist with the accumulation of the capital required. Education costs are constantly on the rise and it is essential that a family start saving early for their investment in the future of the next generation.
Private School Funding:
An RESP is restricted to the funding of post secondary schooling so we often utilize non-registered investment accounts or family trusts to save for and ultimately fund a private school education.
The DS Family Trust program may allow high income earners to lend funds to a trust (currently at a very low prescribed rate) where the investment income within the plan can be flowed through to, and taxed in the hands of the child. The program can be a great way to effectively split income with family members in a much lower tax bracket while concurrently funding their schooling.
Post Secondary School Funding:
An RESP (Registered Education Savings Plan) account is the foundation for planning your child or other family member's post-secondary education. The plans are an invaluable tool that provide government grants/bonds to supplement your contributions, enjoy tax deferred growth of the capital within the plan, and the eventually experience taxation of the growth and grants in the hands of the beneficiary (usually at a very low marginal tax rate) not the contributor.
We’re here to Help:
If you are in need of a proper education planning analysis as part of a broader wealth building strategy, we’d love to speak with you. Please feel free to contact our team (contacts below) to arrange a complimentary, no commitment consultation.
Please also refer to the "Establishing an RESP" and "DS Family Trust" workbooks attached below.