In-Trust Accounts for Minors
Every year, my children receive cash gifts, whether it be birthday, chinese new years, etc. I was in the process of opening up a simple Tangerine children's savings account but interest rates are 0.02% and I figured that if I can get even a 1% annual return from holding positions, that'll be much better (especially over 18 years).
I plan on just buying simple ETFs or MFs with no dividends and just enjoy the capital appreciation. My understanding is that interest or dividends will be attributed to the donor (which I'm fine with) while capital gains will be taxed on the minors hands. Is this accurate? Anyone have experience in setting up an in-trust account on Questrade specifically. This is where I would look to open them as it is currently my trading platform.
"If income-producing property, or money which is used to purchase income-producing property, is transferred or loaned to a related minor, either directly or indirectly, or by means of a trust, the income from the property will normally be attributed back to the person giving the gift or loan. The capital gains from the property will be considered capital gains of the minor."