Multi-Generational RESP Planning Planification REEE Multigénérationnelle

The RESP Beyond Its Basic Function

The Canada Education Savings Grant adds 20% on the first $2,500 contributed annually, to a lifetime maximum of $7,200 per beneficiary. For high-net-worth families, this grant is a guaranteed, risk-free 20% return on $2,500 per year that requires only contribution discipline to capture. The investment returns inside the plan grow tax-free, and the Educational Assistance Payment component is taxed in the student's hands — typically at a very low marginal rate.

Family Plans and Subscriber Control

A family RESP allows a subscriber to name multiple beneficiaries from the same family, providing flexibility to reallocate plan assets if one beneficiary does not pursue post-secondary education. For high-net-worth families with multiple children and potentially grandchildren, a well-structured family plan retains subscriber control over significant tax-free investment assets that can be redirected as family circumstances evolve.

The Accumulated Income Payment Strategy

If a beneficiary does not pursue post-secondary education, the RESP can remain open for up to 36 years. Any subscriber with a sufficient RRSP contribution room can withdraw the accumulated income as an Accumulated Income Payment — which is taxable but can be transferred to an RRSP if room is available, eliminating the tax on that portion entirely. St. Lawrence Gate structures RESP accounts from the outset with this contingency in mind.