Personal Finance

Family RESP vs Individual

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  • Aug 13th, 2019 10:43 am
May 27, 2016
1 posts

Family RESP vs Individual


My question is not regarding the difference between family or individual. Its actually if converting to family once one child is already starting university. We have 2 kids 10 years apart, and both have individual resp accounts. We were talking to our financial advisor while filling out the forms to withdraw money for our eldest , who is starting university. He has suggested we convert our eldest individual plan to a family plan, and put all monthly contributions into that one, to maximize the grant. ( as of now any additional contributions to our eldest wont get a grant, shes 18).And in doing so our eldest can still benefit from growth if she continues further in her studies.

This would involve a) converting the eldest to family b) transferring our youngest individual plan into the family .

I know about the max 7500 grant withdrawal per each etc. But is there anything else I need to know ?

Is creating a family plan once one is in university even feasible? And Is it 100% the grant will be given even if a 18 yr old is on the plan, as long as the youngest is attached.

Maybe I'm complicating this lol
2 replies
Deal Fanatic
Jul 1, 2007
8569 posts
You're probably complicating things.

One thing to be aware of is that even if you don't have a family plan, if the eldest doesn't use up all the money you'll still be able to transfer it (minus grants) to the youngest for their education.

Something to also be certain of as you're doing withdrawals from the plan for the eldest is to ensure that you're taking growth and grant money out first, not capital. Capital is easy for you to take out when she's done university, to simply give to the youngest. Growth and grant money is the complicated part of the RESP.
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Mar 11, 2016
2081 posts
final grants given the year your oldest turned 17 more grants for that one...still a good plan to combine...pretty much a must do in your scenario for many reasons including potential future gains as you mentioned and also for the reason mentioned above


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