Tuesday, December 3, 2013
Mike Homan, the author of "The RESP Book: The Simple Guide to Registered Education Savings Plans for Canadians," explains that although it is not possible to pass a family RESP to a child during your lifetime for the benefit of your grandchildren, there are ways to ensure that the RESP will be passed on post mortem so that your grandchildren can reap the benefits.
One way to accomplish this is to advise clients to leave detailed plans appointing a successor after death. Not including instructions in the will provides room for the resulting funds to be funneled to unintended beneficiaries, which could cause family disputes.
Another more complicated option is to set up a trust and pass the RESP assets to your child so that he is the trustee and add trust terms that require him to use the money to fund your grandchildren’s education.
A third option is to have your child open an RESP with himself as the subscriber and his children as the beneficiaries.
SeeJohn Heinzl, Don't Forget RESPs In Your Estate Planning, Investment Reporter, Nov. 29, 2013.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.