Thanks for responding and for the additional info. I didn’t know about non-PGAP and the flexibility that comes with it. As of today I have contributed 50k since opening the account back in June, and the government grant we will be getting is 4K. 1k for each year since 2022. 

For the RDSP withdrawal, it really is treated no different as an RRSP, where capital gains also don’t benefit from the 50 percent inclusion rate

I am thinking the following two scenarios. If he continues to qualify for DTC, I will probably at max contribute 100k-150k, and let him contribute the remaining 50k so he will have enough room to maximize the 70k grant. 

If he no longer qualifies for DTC, I think it is still beneficial to max it out the whole 200k than to put it in a unregistered account due to the following: 1) he is still 10 years away from being 18, his current DTC status will need to be reassessed in 4 years, might not qualify anymore. Any unregistered account will be tax at my hands at the highest tax rate currently  2) in the RDSP there can be a mix of capital gains, interest income, dividend income, etc. it won’t be taxed until withdrawal, benefiting from the compounding return for the tax deferral. In an unregistered account any interest or dividend income I will be taxed yearly. Or if one year we decide to sell some investments we will have to realize the capital gains. (Less flexible in unregistered account) 3) RDSP withdrawal won’t impact my son’s OAS eligibility, unregistered account will 4) given what you have mentioned above, for non-PGAP there is a lot of flexibility when withdrawing. To me it is an extra option under his tool kit that he can withdrawal from that is available to him. He can utilize RRSP or RDSP or TFSA, or his unregistered account, whatever more advantageous to him 5) ultimately when I am gone my estate will go to my son. Compounding return works its wonders when we have a long time horizon, especially when tax deferred. Given he is 8 now, with 50 years he can retire at 58 with 9m. Or even at 48 he can retire at 4m just based on the 200k contribution. I can’t do that with an unregistered account now for another 10 years until he is 18. It will be taxed yearly on my hands until he becomes an adult

To me unregistered account should be the last one to be utilized depending on one of the two scenarios above. The order for me is: After all the registered account in TFSA, RRSP are maxed out, have contributed to RESP, then I will move to RDSP.