Did you know that while the money in a Registered Education Savings Plan (RESP) is commonly intended for the beneficiary (child or grandchild), it rightfully and legally belongs to the subscriber?
In practical terms, that means that upon the subscriber’s death, the RESP collapses, all unused grants and bonds received from the Government have to be repaid, and the RESP funds then form part of the person’s estate, with the tax on the earnings being payable by the estate.
This is true unless the Will provides for very specific terms and instructions allowing the RESP to be maintained for the benefit of the children or grandchildren’s education.
To avoid having your RESP collapse, contact our estate planning team today for comprehensive legal advice, and a diligent review of your estate plan.
613-837-7408 or firstname.lastname@example.org