The government grants available for RESPs are: No, property of an RESP account cannot be attached to a loan. 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. No. You can open an RESP without having a bank account.
Are the government grants included in the calculation of the $50,000 lifetime contribution limit to an RESP?
as the distributions and income earned on the investments in the plan.
and whose families may not normally be able to save for their children’s post-secondary
education. RESP contributions are not required to receive the CLB.
the net family income of the child’s primary caregiver. The primary caregiver is the person
who receives the Canada Child Tax Benefit (CCTB). The net family income is reported on
the primary caregiver’s CCTB statement provided by Canada Revenue Agency (CRA) each
July. The Additional CESG amount can change over time as the net family income changes.
qualify for the 20% CESG was increased to $2,500 from $2,000 for a maximum $500 Basic
CESG. The lifetime maximum of CESG that one beneficiary can receive is $7,200.
In order to be eligible for the Basic CESG, the beneficiary must be a Canadian resident at
the time of the contribution, and the contributions must be made before the calendar year
the beneficiary turns 18. In addition, certain conditions must be met for the beneficiary to
receive Basic CESG in the calendar year the beneficiary turns 16 or 17 years old.
beneficiary must be under 21 years of age at the time of designation and must be related
to the subscriber by blood or adoption. Children, grandchildren, brothers and sisters are
considered blood relationships, while nieces and nephews are not. Subscribers may not
designate themselves or a spouse or a common-law partner as a beneficiary under a family
designate anyone as the beneficiary of the plan, including himself/herself, a spouse or a
common-law partner. There is no age restriction on the beneficiary of an individual plan.
The individual plan is the only plan available that allows the beneficiary to be unrelated
by blood or adoption and any beneficiary over 21.
an RESP; however, the entire lump sum will not be eligible for a government grant.
Note: Future government grants would not be available on the lump-sum amount contributed.
increased to $50,000 and the annual contribution limit of $4,000 has been eliminated.
What documentation should a promoter get from a beneficiary before making an Educational Assistance Payments (EAP)?
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.
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.
Note: An RESP allows adults to earn interest on their registered education savings plantax-free.
Obtain a Social Insurance Number (SIN). You must have one for your child to open the RESP. There’s no fee. However, certain documents, such as a birth certificate or permanent resident card, are required.
For example, the annual CESG available for each RESP beneficiary can be as much as $500.00 with the maximum life-time amount of grant money available set at $7,200.00. This is a huge benefit for anyone wishing to invest in their Child’s future education
Bottomline: the sooner the better
For Individual RESP plans, you can designate any individual as a beneficiary (related or not related), only if the individual has a valid social insurance number (SIN) and they are resident in Canada when the designation is made.
Note: If you are opening an RESP account for a beneficiary that is 18 years of age and older, your RESP account cannot qualify for the Canada Education Savings Grant (CESG), as the grants are only available for beneficiaries 17 years of age or younger.
For Individual RESP plans, in general there are no restrictions on who can be the original subscribers. you and your spouse or common-law partner can be a joint subscriber under a single RESP.
supplies and other incidentals relating to the student’s education.
The government grants available for RESPs are:
No, property of an RESP account cannot be attached to a loan.
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.
No. You can open an RESP without having a bank account.