The following section is an excerpt from Saving for Your Children's Education . Future Savings Informal trusts are another common way to save for children. Also known as an in-trust account, it's an investment account opened on behalf of a child.
Money is saved through contributions to the account.
The assets belong to the child and must be held for the child until the age of majority. An informal trust is similar to an RESP in that funds can be channeled into investments. These can include GICs, bonds, etc. As well, you are not penalized should the child decide not to go on to post-seondary studies. In fact, the child once reaching the age of majority, can use the funds for other purposes unrelated to education, like buying a car.