In Trust Account for Canada Child Benefit

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patriot1
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In Trust Account for Canada Child Benefit

Post by patriot1 » 05 Jan 2018 14:14

If child benefit payments are invested into an in trust account all returns are taxable to the child. Does anyone have any experience with this? I'm wondering if CRA would want to see a direct audit trail to the payments, or if it's OK with either parent putting in an amount not exceeding payments to date.

Just a Guy
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Re: In Trust Account for Canada Child Benefit

Post by Just a Guy » 08 Jan 2018 19:53

Instead of getting complicated, why not invest it in an RESP, since that is a tool specifically designed to do what you mostly want to achieve with the added benefit of government grants added to it.

rishitibriwal
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Re: In Trust Account for Canada Child Benefit

Post by rishitibriwal » 09 Jan 2018 10:01

patriot1 wrote:
05 Jan 2018 14:14
If child benefit payments are invested into an in trust account all returns are taxable to the child. Does anyone have any experience with this? I'm wondering if CRA would want to see a direct audit trail to the payments, or if it's OK with either parent putting in an amount not exceeding payments to date.
We did this with both of our children. While I agree that the RESP idea is cleaner, our thinking was that we would fund the RESPs for their education and that the childcare benefits received should also belong to the kids. Opened separate bank accounts for the kids and annually transferred the amount received. 16 years now and have not had any issues. If we do get questions, i’ve Got the details of when and how much was received and can match it to the funds in their accounts.

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patriot1
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Re: In Trust Account for Canada Child Benefit

Post by patriot1 » 09 Jan 2018 14:20

Just a Guy wrote:
08 Jan 2018 19:53
Instead of getting complicated, why not invest it in an RESP.
Because the RESP is maxed out. I didn't mention it because I thought it would be obvious.

And thanks rishitbriwal.

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