InfoCapsule 7: Family plan versus individual plan

On this page

• List of acronyms
• Preface
• About beneficiaries
• About contributions

Alternate format

A PDF version of the InfoCapsules for RESP providers is available on the index page.

Preface

Choosing between a family plan and an individual plan will depend on:

• the beneficiary’s relationship to the subscriber, and
• other factors that might impact the decision

About beneficiaries

In a family plan

• There may be 1 or multiple beneficiaries
• All beneficiaries must be related to the subscriber by blood or adoption
• The Additional Canada Education Savings Grant (Additional CESG) and the Canada Learning Bond (CLB) amounts can only be paid:
  • if all beneficiaries of the Registered Education Savings Plan (RESP) are siblings
• Beneficiaries must:
  • be under the age of 21 when named to the RESP, or
  • already be a beneficiary under another family RESP immediately before being added to a family RESP
• Sharing for educational assistance payments (EAP):
  • all beneficiaries named in an RESP can share the CESG (up to $7,200 each):
    • the provincial education savings incentives administered by ESDC, and
    • the RESP earnings in an EAP if they satisfy EAP eligibility criteria
• If the beneficiaries are not all siblings:
  • only the Basic CESG can be paid into the RESP

In an individual plan

• Only 1 beneficiary can be named to the RESP
• No age limit as to when a beneficiary can be named to the RESP
• No blood or adoption relationship required between the beneficiary and the subscriber

About contributions

In a family plan

• They must be made in the name of a specific beneficiary
• They can be made up until the day before this beneficiary turns 31 years of age
• The lifetime limit is $50,000 per beneficiary, across all plans
• They have to stop 31 years after the year the plan was established

In an individual plan

• They are not limited by the age of the beneficiary
• The lifetime limit is $50,000 per beneficiary, across all plans
• They have to stop 31 years after the year the plan was established