Summary:

In this podcast episode, Gordon & Jenna discuss the topic of Registered Education Savings Plans (RESPs) and their application in estate administration. They start with an introduction to RESPs and explain the government's rules regarding their contribution limits, maximum lifetime contribution limit, and how grants are taxed. They also explain the different types of plans - single, family, and group plans.

The interesting aspect of RESPs is that if there is no successor subscriber named for the plan, it falls into the residue of the estate, and the grant money can be returned to the government. This can raise questions about how to divide the residue of the estate. Executors need to ensure that the funds stay for the benefit of the child or grandchild.

Key Points:

• RESP is a plan that helps parents or guardians set up funds for the benefit of their children's education
• There are contribution limits for the plan, and grants are taxed in the hands of the beneficiary
• There are different types of plans available, such as single, family, and group plans
• If there is no successor subscriber named for the plan, it falls into the residue of the estate, and the grant money can be returned to the government
• Executors need to ensure that the funds stay for the benefit of the child or grandchild

Hosts:
Jenna Carvalho
The smartest way to choose an executor.
Guardian Estate Company
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Gordon VanderLeek
Give your family a legacy of protection - Wills, Estates and Trusts.
VanderLeek Law
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