RESP accounts in Canada - Good idea or not? Registered

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Hi David,
Since you have such a vast knowledge of so many things I was wondering if
you had any advice on educational savings programs?  I had a representative
from Canadian Scholarships come and tell me about the plan but I don't have
a lot to compare too.  My son is 15 months old.  Thanks again and again,
JXXXXXXXX
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david ingram replies:
I am not and have never been a fan of these plans although I will be the first to admit that they were greatly improved five or six years ago and are much more palatable now. 
I much prefer an "in trust" account for your child.  an In Trust Account involves buying a growth mutual fund in your child's name.  Any interest or dividends is still taxable to you but any capital gains are taxable to the child. However, there is no 20% spiff made by the government with an in trust account.  So, my best advice would be to put the first $2,000 a year into the RRSP and any excess into an in trust account.
George Hatton in our office at 913-9136 can assist you or Fred Snyder (former host of CFUN's Investment show) at 644-PLAN  are both competent to explain the plans and chart out the what-if's involved between the two concepts.
Hope this helps.  
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321 
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