No, as long as the payment qualifies as an EAP at the time it is made there is no maximum limit. It should be noted that on August 12, 2008, a yearly EAP threshold of $20,000, indexed annually by the Consumer Price Index, was established to assist financial institutions in determining the reasonableness of an EAP request. The Canada Revenue Agency (CRA) will not question legitimate EAP requests below $20,000, nor will financial institutions be expected to assess the reasonableness of each expense item, as long as the conditions permitting an EAP are met.
The financial institution administering the RESP account is required to obtain proof that the beneficiary is enrolled in a qualifying educational program at a post-secondary school level at a Designated Educational Institution. A financial institution is not required to obtain receipts from a beneficiary as proof of expenses before making an EAP.
For 2008 and subsequent taxation years, contributions may be made into the plan by or for the subscriber up to the 31st year following the year in which the plan was opened.
Yes, every time a subscriber makes a contribution to a Family plan, the subscriber must assign amounts to specific beneficiaries.
Excess contributions to an RESP are subject to a 1% per month penalty for the excess amount contributed.
No, property of an RESP account cannot be attached to a loan.
The definition of adoption includes both a legal adoption and an adoption in fact. An adopted child is related to his grandparents since the child is connected by adoption to his parents who are connected by blood relationship to their parents. Similarly, the child of a spouse living in a long-term common-law relationship is the adopted child in fact of the other spouse if that spouse exercises effective parental care and guidance on a continuing basis. The child will also be related to both sets of grandparents.
There is no restriction on who can be the beneficiary of a non-family plan.
A subscriber can be a beneficiary only under a non-family plan.
There are no limits on the number of plans a subscriber can establish for a beneficiary, or the number of RESPs a beneficiary may have.