Archives: FAQs

Anyone who wants to contribute to a child's education can contribute to an RESP, subject to the beneficiary's annual and lifetime limits and plan requirements.

No, there is no residency requirement for RESP subscribers. However, a subscriber needs to provide a social insurance number (SIN) when the RESP is established.

Yes, a spouse/former spouse can replace the original subscriber in the event of marriage breakdown, if the separation or divorce is recognized by a decree, order or judgment. It is also possible to change the subscriber after the death of the original subscriber for contracts that permit it and were entered into after 1997.

Under the Income Tax Act, an Individual RESP plan with joint subscribers is not required to be divided between the parties following a separation or divorce. If you and your former spouse previously entered into an RESP contract as joint subscribers while married, you and your ex-spouse can both remain as joint subscribers post-separation and divorce, and contribute independently.

No, an estate is defined as a trust. The Act's definition of Education Savings Plan excludes a trust from being party to the contract.

Every RESP is different. Some types require specific monthly contributions. Others let you put money into your RESP account whenever you want. The sooner you start to save, the sooner you’ll be earning interest, and the more your money will grow

Yes. A child can be named as the beneficiary of more than one RESP account. However, you should be aware that there is a lifetime limit of $50,000 that can be contributed for each child. Be sure to find out if anyone else is making contributions to a plan for that child so that you don't go over any limits when you decide how much money to put into an RESP.

Your money grows tax-free while it is in your RESP but you don't get a tax deduction for the money you put into an RESP. The money that your investment earns while it is in the RESP won't be taxed until money is taken out to pay for your child's education. Money paid out of the RESP as an Educational Assistance Payment (EAP) is taxed in the hands of the student. Since many students have little or no other income, they can usually withdraw the money tax-free.

Yes. You can open an RESP at any age. While you can open a plan for a child, you can also name yourself or another adult as the beneficiary. Please note that all children up to the age of 17 are entitled to the Canada Education Savings Grant (CESG). Note: An RESP allows adults to earn interest on their registered education savings plantax-free.

Up to $50,000 for each child (named in one or more RESPs). Although there are no annual limits on contributions made to an RESP, the Canada Education Savings Grant (CESG) will only be paid on the first $2,500 of contributions made every year. If the child has accumulated grant room, then the CESG will be paid on the first $5,000 of contributions made per year.