In Canada, a Registered Education Savings Plan (RESP) can be opened by a parent, guardian, grandparent, or other adult. The person opening an RESP is called a subscriber, while the student is the beneficiary. Both require a valid Social Insurance Number (SIN). Spouses and common-law partners can open an RESP account together, and a family plan allows multiple related children to be added under a single account.
Government grants, like the Canada Education Savings Grant (CESG) or the Canada Learning Bond (CLB), are only paid to the RESP account if the eligibility requirements are met.
RESP account opening basics
Roles:
Who can open an RESP: Any adult (parent, guardian, grandparents, relatives, family friends).
- Subscriber: The account opener and owner.
- Beneficiary: The child for whom funds are being saved.
- Joint subscribers: Allowed for spouses/common-law partners in any plan.
Plan types:
- Individual Plan: Only one child.
- Family Plan: More than one child.
Documents needed: Child’s social insurance number, your own SIN, subscriber government ID.
Contribution room: $50,000 lifetime contribution limit per beneficiary (tracked across all RESP accounts).
The roles: Subscriber and beneficiary (and who can be each)
Every RESP has two key roles:
The Subscriber (account owner)
This is the person who opens the savings plan and manages the funds inside it. They control the deposits and request withdrawals. Subscribers can be:
- Parents or guardians.
- Grandparents.
- Other relatives or family friends.
- The student themselves, if over the age of 18.
The Beneficiary (student)
This is the person who will use the RESP funds for their post-secondary education.
Basic eligibility requirements and documents you’ll need to open a Registered Education Savings Plan RESP
Opening a registered education savings plan (RESP) is fairly straightforward. But, there are some eligibility requirements you’ll need to meet and documents you’ll need to provide proof of:
- Social Insurance Numbers (SINs): Both the subscriber and the beneficiary will need valid SINs. If you have a newborn, you’ll need to wait until their SIN is issued before you can open an RESP.
- Canadian residency and address: The subscriber must be a Canadian resident
Can Non-Parents Open an RESP? Gifting vs. Owning the plan
Grandparents and other relatives have two options if they want to contribute money to a registered education savings plan:
Open an RESP account for the child
As a non-parent, you do have the option of opening an RESP account for a child’s post-secondary education if you want full control over contributions.
Contribute to an existing RESP account
If the child you want to help save for is an Embark Student Plan beneficiary, you can ask the subscriber to share the child’s unique gifting link and contribute deposits directly into their RESP online.
Beware of over-contributions
Because the contribution room is tracked per child across all RESP accounts, having multiple RESPs for the same student can make it more difficult to stay within the $50,000 lifetime limit. Families should coordinate to avoid tax penalties.
Individual plan vs. family plan: Which to choose
When you open an RESP for a child, you’ll have the option of choosing between an individual plan and a family RESP. Here are some key features of both accounts, and some tips on which to choose between an individual plan vs. a family plan:
Individual plan
- These RESP accounts are designed for a single beneficiary.
- Anyone can open an RESP plan for a beneficiary’s education, including non-relatives.
- This account is flexible if you want to save for post-secondary school for one child or for yourself.
Family RESP
- A family RESP allows you to have more than one beneficiary per account, which is great for families with more than one child.
- Only parents, grandparents and siblings of beneficiaries can set up family plans. We typically recommend this type of plan for parents, even if they only have one child.
- All children must be related by blood or adoption. No friends or distant relatives will be considered eligible beneficiaries.
- Beneficiaries can share contributions, government grants, and investment income if one child doesn’t use all their funds, up to a maximum of $7,200 per beneficiary.
Important: Even in a family RESP, the contribution room is tracked separately for each child.
Joint Subscribers, Separation, and Custody
Many providers allow spouses or common-law partners to open a joint RESP. This can make managing your contributions toward your child’s future easier, as both parents have contribution authority over the savings account.
But what happens if relationships change?
In the event of a separation or divorce, both subscribers will have access to and authority over the RESP, unless both agree to remove one person’s access.
Age questions: Opening for a newborn, teen, or adult student
Higher education is for everyone, regardless of age. But when it comes to RESP savings, there are some age restrictions you need to be aware of:
- Newborns: You can start saving once your baby has a valid SIN.
- Teens: Although there’s no age limit for opening an RESP, eligibility for grants like the Canada Education Savings Grant (CESG), the Canada Learning Bond, and provincial grants has an age cap of 17. Certain grants have qualifications before a child turns 16 in order to keep receiving the grant at age 16 and 17.
- Adult students: You can open an RESP account for yourself if you’re over 18. You will, however, need to be a Canadian resident to do so.
Government grants 101 (just enough to get started)
RESPs are a powerful tool when saving towards your child’s post-secondary education, largely because of government contributions. Here’s a quick overview of these grants:
Canada Education Savings Grant (CESG)
- The Canadian government will match 20% on the first $2,500 you contribute annually to your RESP.
- Basic CESG money caps at $500 per year, with a lifetime maximum of $7,200 per beneficiary.
- If a family is eligible for ACESG, they can get more.
Canada Learning Bond (CLB)
- This grant is specifically for low-income families.
- It provides up to $2,000 total, even if you’re unable to contribute to your child’s education account.
Provincial grants
- British Columbia Training and Education Savings Grant (BCTESG): Is a one-time grant of $1,200 for BC residents.
- Quebec Education Savings Incentive (QUESI): Up to 10% of annual contributions for Quebec residents. Annual and lifetime maximums apply.
Any eligible grant money will be deposited directly into your RESP once eligibility is confirmed.
Avoiding over-contributions and keeping everyone in sync
Remember, the lifetime maximum you can contribute to your child’s post-secondary education is $50,000. If parents, grandparents, or other relatives are all contributing, it’s easy to accidentally go over this lifetime cap.
Here’s what you can do to avoid this:
- Communicate with all family members about who is contributing and how much is being deposited.
- Keep a running spreadsheet or use your provider’s online tools.
Remember: Excess contributions are subject to penalties from the Canada Revenue Agency (CRA). You’ll have to pay a 1% monthly tax on the excess amount until it’s withdrawn.
Step-by-step: How to open an RESP
To open an RESP, here’s what the process typically looks like:
1. Pick a provider: Open an Embark RESP.
2. Choose your plan: Decide whether you want to open an individual or family RESP.
3. Gather documents: Ensure you have your child’s SIN, your SIN, ID
4. Make a deposit: Even a small amount can qualify you for government incentives.
5. Apply for grants: Emabrk will submit applications for CESG, CLB, and other provincial incentives.
6. Set up a contribution schedule: Many families aim to deposit $2,500 per year to maximize CESG.
Once your child pursues post-secondary education and enrolls in a qualifying program, they can withdraw money from the account through educational assistance payments (EAPs), which consist of your investment growth and any provincial and federal government grants. Your own contributions can be withdrawn tax-free at any time, whether your child decides to go to school or not. If your child does not go to school, and you want to withdraw your savings, there are penalties to be aware of.
RESP FAQs
Embark is Canada’s education savings and planning company. The organization aims to help families and students along their post-secondary journeys, giving them innovative tools and advice to take hold of their bright futures and succeed.
