Education Planning

Registered Education Savings Plan (RESP)

RESPs can help you build an education fund for your child or grandchild (or a friend's or relative's child) by allowing you to earn investment income in a tax-deferred environment. 

What are some of the highlights?

Tax Sheltered Growth - Earnings within an RESP are not taxed. When the funds are taken out for the purpose of education, withdrawls are taxed in the student's hands, often resulting in little or no tax.

Government Contributions - Canada Education Savings Grants (CESGs), Canada Learning Bonds (CLBs), and other provincial government incentives give your plan added benefits if you meet the requirements. CESGs are contributions to your plan made by the government where they match 20% on the first $2500 contributed annually to an RESP, to a maximum of $500 per year, and a total of $7,200 per beneficiary over the life of the plan. 

Built in Flexibilty - If the child doesn't pursue post-secondary education, you may be able to choose a new beneficiary. Even if he or she decides to travel first you have 35 years to use the funds. Lastely, if for some reason your plan beneficiary decides not to attend post-secondary education you may transfer up to $50,000 of RESP income to your RRSP (or your spouses's) during your lifetime to the extent you have available RRSP contribution room.

Giving a beneficiary the tools gained from further education can send them down the path of lifelong success. Contact your advisor to discuss an education savings plan that's right for you.