ITF Policy

In Trust For (or ITF) accounts are non-registered plans that allow investors to save on behalf of a child. Many parents, grandparents, aunts and uncles use ITF accounts to complement their Registered Educations Savings Plans (RESPs).

How do you open an ITF account?

Mail or fax us a completed application form. The ITF terms and conditions can be found on page 7 of the application.

1. How ITF accounts work

What is an ITF account?

An ITF account is a non-registered account opened by an adult (someone who is the age of majority) in trust for someone who is not yet legally considered an adult (a minor). This typically happens when a parent or loved one opens an account in trust for a child.

The account holder is the trustee. The child is the irrevocable beneficiary – a beneficiary who cannot be removed once named to the account.

Who can open an ITF account?

Any adult can open an ITF account for a child. For residents of Quebec, a parent or legal guardian may open an ITF account for their minor child.

Who can be a beneficiary of an ITF account?

Any minor can be listed as a beneficiary. However, ITF accounts cannot have multiple or contingent beneficiaries. Simply put – one child per account – no matter how many trustees are registered as account holders.

Who actually owns an ITF account?

The minor child is the beneficial owner of the assets, while a trusted adult – the trustee – maintains legal authority over the account during the beneficiary’s childhood. Anyone who donates to the account irrevocably relinquishes ownership and entitlement of the deposited funds to the beneficiary.

The trustee’s job is to manage the account in the best interest of the beneficiary.

What are the advantages of an ITF account?

  • Liquidity
    ITF accounts are not subject to the rules and regulations imposed on similar registered plans. This makes the funds easy to access when the time comes.
  • Seamless Transfer to the Beneficiary
    Once the beneficiary is of age, any request they make results in a non-taxable transfer into a new account in the beneficiary’s name.

What happens when a beneficiary reaches the age of majority?

The beneficiary does not automatically replace the trustee as the account holder of record. As soon as the beneficiary is of age, they inherit the same authority over the account as the trustee. This authority is shared with the trustee allowing each to independently issue instructions on the account.

It is important to note that once a beneficiary reaches the age of majority, they alone are solely entitled to receive the proceeds of any withdrawals or transfers.

Once the beneficiary is of age, it is expected that the trustee will work with their advisor to have the account transferred directly to the beneficiary. This transfer is not taxable as ownership isn’t truly changing. The transfer simply allows the beneficiary to make their own investment decisions and assume sole authority over the account.

Is an ITF account a Formal Trust?

ITF accounts are not Formal Trust accounts. A Formal Trust requires the drafting of highly specialized legal documentation created by a lawyer. Anyone interested in opening a formal trust with Franklin Templeton should speak with their advisor.

2. Who is responsible for filing taxes?

The trustee is responsible for filing tax returns for capital gains and income earned in an ITF account. Tax slips will be issued with the trustee’s name and SIN, and will clearly indicate that the account is registered in trust for a beneficiary, whose name will also appear on the slip. If attribution rules are to be applied, tax slips should be issued with the beneficiary name and SIN.

It is of critical importance that trustees work with advisors and tax specialists to fully understand the tax implications of holding an ITF account, and ensure filing is done accurately year after year.

If the preference is to have tax slips issued in the name of the beneficiary with his/her name and SIN in lieu of the default noted above, please contact us as soon as possible and we will accommodate your request.

3. How to request transactions in an ITF account

While the beneficiary is a minor

All instructions require the authorization of the trustee.

Once the beneficiary is an adult

For all provinces except Quebec - We will continue to take instructions from the trustee, but redemption and transfer proceeds may only be payable directly to the beneficiary.

We will also take instructions directly from the beneficiary.

For Quebec only - Instructions will be accepted from only the beneficiary once he/she reaches the age of majority.

Note that any requests made independently by an adult beneficiary will result in the account being transferred into their name, to ensure appropriate tax and account activity reporting. To avoid delays, ensure we have complete beneficiary information on file. The transfer will be completed before the original request is processed.

All transaction requests can be mailed or faxed to our offices.

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4. Terms and Conditions

A set of Terms & Conditions that apply to ITF accounts are included in Franklin Templeton’s Combined Application Form. Important: We are in the process of updating the ITF Terms & Conditions on the Franklin Templeton Combined Application Form specific to Québec investors. In the interim, please view the current ITF Terms & Conditions included in Section 7 below.

These terms and conditions apply only to ITF accounts that were opened after October 1, 2017. Call us if you have questions about ITF accounts opened before that date.

5. Information for Québec investors

In order to open an account for a minor beneficiary in Québec with an initial investment over $25K, we require a Tutorship Agreement or similar document that outlines the details of the tutorship, how the account will be administered and by whom. Visit Curateur public Québec’s website

to learn about tutorship to the property of a minor. Québec residents interested in opening a Tutorship account with Franklin Templeton should speak with their advisor to initiate the process.

6. Glossary

ITF accounts consist of various components, each of which is required to establish a trust.

Asset – This is the money within the account, held in trust for the beneficiary.

Beneficiary – This is the person for whom the account is opened in trust, sometimes referred to as the ‘in trust for.’ This person is the beneficial owner of the assets – they enjoy the benefit of owning the property even though it is registered in title to the trustee.

There can only be one beneficiary listed to an ITF account, and that beneficiary is irrevocable. They cannot be removed from the account once named.

Donor – This is any person who contributes to the account.

Joint Trustee – This is the term applied to each trustee when there is more than one trustee listed to an account.

Trustee – This is the person who effectively holds the account while the beneficiary is a minor. While they do not own the account, they hold signing authority over it. In this way, they are able to manage the assets in the best interest of the beneficiary.


The trustee(s) certifies/certify the following:

  1. Each account holder(s) identified in Section 2 of this application acknowledges that it is the trustee of the assets held for the benefit of the named beneficiary in the “In Trust For” account (the “ITF account”).
  2. The assets are being gifted irrevocably to the trust for the benefit of the named beneficiary. In cases where the assets are derived from a third party, they are being held by the trustee for the benefit of the beneficiary.
  3. I/We acknowledge that there is no formal written trust agreement in place for the ITF account. I/we also understand that Franklin Templeton Investments is not responsible for monitoring any limitations, conditions or restrictions on the powers of the Trustee(s) to manage or deal with the assets held in the ITF account. Franklin Templeton Investments will not monitor any investment restrictions in relation to the ITF account.
  4. It is my/our responsibility to ensure that the ITF account is opened and operated in accordance with applicable provincial/territorial laws (including the laws that apply to the Province of Quebec, if applicable) that govern ITF accounts, including trust and tax laws in the applicable jurisdiction.
  5. I/We acknowledge that the Social Insurance Number provided by the account holder/trustee in Section 2 of this application, will appear on the applicable tax receipts generated for the ITF account and that it is the account holder’s responsibility to file the appropriate tax returns for this account.
  6. I/We acknowledge and understand that in my/our capacity as trustee(s), I/we must exercise the skill, care, diligence and judgment that a reasonable trustee would exercise in investing the assets of a trust and will comply with all relevant provincial/ territorial laws (including the laws that apply to the Province of Quebec, if applicable) in acting in such capacity.
  7. Depositing assets in trust, in the ITF account, forever “divests, deprives and disposes” me/us of any beneficial title to such assets and vests the trust assets irrevocably in the beneficiary’s hands. If assets are withdrawn from the ITF account, they shall be used solely for the benefit of the beneficiary. Each account holder, as trustee, acknowledges that it shall only manage the assets and is not beneficially entitled to the assets held in the ITF account.
  8. I/We acknowledge that any joint account holder named in Section 2 is acting as a joint trustee. If a joint account holder dies while the beneficiary is still a minor, the surviving account holder would remain the sole trustee (unless otherwise mandated by applicable provincial/territorial laws, including the laws of the Province of Quebec, if applicable).
  9. I/We acknowledge and understand that once the beneficiary reaches the age of majority (based on applicable provincial/territorial laws, including the laws of the Province of Quebec), Franklin Templeton Investments may accept instructions directly from the beneficiary without my/our consent and that proceeds of the ITF account will be payable directly to the beneficiary and not the trustee, unless otherwise consented to or directed by the beneficiary. Upon attaining the age of majority requests made by the beneficiary may result in an in-kind or in-cash transfer (depending on the nature of the request) and will only be made to an account held by the beneficiary in his/her name with an existing dealer and/or financial advisor.
  10. I/We acknowledge that there may be legal and tax consequences in creating an ITF account and that Franklin Templeton Investments makes no legal or tax representations regarding these types of accounts. I/We have been advised to obtain professional tax and/or legal advice prior to opening the ITF account and making investment decisions for the benefit of the named beneficiary.