With one application, you can choose whatever plan works best for you: Individual Plans- Anyone can open an Individual Plan for a child, including parents, grandparents, aunts, uncles, even friends.
- You may only have one beneficiary per plan.
- You can contribute up to December 31st of the 21st year of the plan regardless of the age of the beneficiary.
- Individual Plans mature on December 31st of the 25th year following the year in which the plan was opened.
- Eligible beneficiaries may replace existing beneficiaries at any time.
Family Plans- Beneficiaries must be related by blood or adoption to the subscriber, as defined by the Income Tax Act, and contributions can only be made for beneficiaries under age 21.
- Can have multiple beneficiaries so you can direct funds to your other children if one decides not to pursue a post-secondary education.
- Contributions to a Family Plan must still be allocated to specific beneficiaries for the purpose of calculating RESP limits ($4,000 annually and $42,000 lifetime) and CESG amounts.
- Contributions in respect of a particular beneficiary can only be made before the beneficiary reaches 21 years of age.
- Family Plans mature on December 31st of the 25th year following the year in which the plan was opened.
- Eligible beneficiaries may replace existing beneficiaries at any time. You may not designate a beneficiary who is 21 years or older.
Choosing a Plan TypeScotiabank recommends a Family Plan in most circumstances. If one beneficiary does not go on to post-secondary education other beneficiaries can still use the savings. However, since there is no requirement that all the beneficiaries draw equally from the plan, unless care is exercised you may wind up with older children using up all the savings, leaving a younger child with a financial shortfall.
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