RESPs are government approved plans designed to assist and encourage Canadians to save for post-secondary education.
RESPs are not specific investments, but a vehicle used to hold a variety of investments and shelter them from taxes. Contributions to an RESP grow tax-free but unlike RRSPs, they are not tax deductible.
There are two types of plans – family plans and specified plans.
Family plans are the only RESP that allow an individual to name more than family member. Each family member must be connected by blood relationship or adoption to each living person who created the plan.
A specified plan is for a single beneficiary RESP (non-family plan).
If you want to open an RESP, contact us for more information.