InfoCapsule 7: Family plan versus individual plan
From: Employment and Social Development Canada
Disclaimer: RESP promoters
The information contained on this page is technical in nature. It is intended for Registered Education Savings Plan (RESP) and Canada Education Savings Program promoters. For general information, visit the RESP page.
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A PDF version of the InfoCapsules for RESP providers is available on the index page.
List of acronyms
- CESG
- Canada Education Savings Grant
- CLB
- Canada Learning Bond
- EAP
- Educational assistance payment
- RESP
- Registered Education Savings Plan
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
- all beneficiaries named in an RESP can share the CESG (up to $7,200 each):
- 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
Note: Some education savings incentives may have to be repaid if conditions for adding or replacing a beneficiary are not met.
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
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