DOES YOUR WILL PROTECT YOUR CHILDREN’S RESP?
A Registered Education Savings Plan (RESP) is a popular and useful way to save for a child’s or grandchild’s post-secondary tuition, including government matching contributions known as the Canada Education Savings Grant (CESG). But what happens if the RESP subscriber dies. Is the RESP safe? Will the intended beneficiary receive the funds? Will the CESG portion be lost?
When you are the subscriber of a RESP, the asset is technically your property, and in the absence of any planning, it will form part of the estate upon your death and may be subject to tax and the loss of the CESG portion. Instead of being held for the education of your children, the RESP will be distributed based on the terms of the will, most often as part of the residue.
Proper planning will provide for a successor subscriber in the event of your death, so that the purpose of your RESP is maintained, and the gains and CESG portion will be maintained.
Contact a Calgary Wills and Estate Lawyer at First West Law LLP to begin the process of planning your will.