A registered education savings plan, or RESP, is a contract between a subscriber and a promoter. The subscriber can be just you or it can be both you and your spouse or a common-law partner. The promoter is the one who pays the contributions. Moreover, the promoter gives any income earned through these contributions to the beneficiaries. That is, the subscriber receives this income through educational assistance payments. Ask online for experts www.heritageeducationfunds.ca.

This contract allows the subscriber to choose one or more beneficiaries. A "beneficiary" in this context refers to the future student or students whom the subscriber has agreed to make contributions toward. Furthermore, the promoter agrees to make educational assistance payments--referred to as EAPs--to the beneficiaries.

A Subscriber's Limitations
Subscribers can only make contributions for their beneficiaries if they meet one of two conditions. First, the subscriber must give the promoter the beneficiary's social insurance number--or SIN--before he or she makes a contribution and the subscriber's beneficiary must be a resident of Canada. Second, the subscriber must make the contribution via transfer from another RESP; if done this way, then the individual in question must have been a beneficiary right before the transfer happened.

There are two types of RESP you can sign up for: (a) family plans; and (b) specified plans.

Family Plans
A family plan RESP allows the subscriber to name more than one beneficiary. However, the beneficiary must meet one of two conditions. The first condition states that each beneficiary must be related or adopted to each subscriber. The second condition states that the beneficiary must have history with the any subscriber that has recently passed away. As for experts at Heritage Educations Funds.

If a beneficiary has entered a family plan after 1998, then he or she must be less than 21 years of age when receiving the beneficiary status. If the beneficiary is 21 years of age during the transfer from one family plan to another, then the beneficiary can retain their status when they begin their new RESP at www.heritageeducationfunds.net

Specified Plans
A specified plan is a tailored contract for one beneficiary. In addition, this beneficiary must qualify to receive disability tax credit for his or her tax year. This includes the 31st anniversary of the plan.
Furthermore, no one else can attain beneficiary status under a specified plan RESP after the 35th anniversary of the plan. Subscribers are not allowed to make contributions after the 35th anniversary as well. Finally, the entire plan must conclude by the 40th anniversary of the plan.

RESP Transfers
Those who wish to transfer from one RESP to another will be glad to know there are usually no tax implications. Furthermore, any transfers that have taken place after 2010 have no penalties if the plan is for more than one beneficiary or if the beneficiary was not yet 21 years of age when the plan started.

Government Regulations for Registered Education Savings Plan