An RESP can help fund a child’s education. But people over 71 may face tax implications if the child quits school and the fund is closed. Kim Parlee highlights a few things to keep in mind.
You can open an RESP for any child, be it your own, a niece or nephew, grandchild or even a family friend. RESP contributions can be invested, plus, if certain conditions are met, they are eligible for a government grant so that, if you contribute regularly, it can be a great way to save for post-secondary education over the long term.