RESP

An RESP is a Registered investment which is designed for education savings. An account can be opened, for the most part, by anyone for anyone. 

Unlike an RRSP, you do not get a tax deduction for contributions to an RESP, however the Federal government will also contribute to your RESP in the form of a grant. Some provinces will as well. 

The funds are not taxed as they grow, and when the child begins their education at an approved institution, the funds can be then withdrawn to help cover tuition, books etc. 

At the time of withdrawal, the funds are taxed in the child’s hands, however due to the child attending school and likely having minimal taxable income not to mention the deductibility of education costs, any tax payable is most likely to be returned. 

Here’s the governments rules and regulations regarding RESP’s : 

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/resp-reee/ 

For more information, please give us a call 1.866.493.3083.