Can an estate contribute to an RESP account? Dec 20th

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Can an estate contribute to an RESP account?

– moneysense.ca

Can money left in a will to be put in a trust fund for a child under 18 be put into an RESP?—Paula

Using a trust to contribute to an RESP

A registered education savings plan (RESP) is a great way to save for post-secondary education. RESP contributions of up to $2,500 per year attract a 20% contribution from the government called a Canada Education Savings Grant (CESG). Low-income families who contribute to an RESP may also qualify for a $500 Canada Learning Bond or other provincial government incentives.

In your will, you can leave instructions to divide your estate among different adult and minor beneficiaries. Assets left to minor beneficiaries are generally held in trust until those beneficiaries attain the age of majority, but trusts can hold funds beyond that age, or they can be used to hold back an estate and distribute it over time to adult beneficiaries.

When you leave money for minor beneficiaries, Paula, you can leave explicit instructions, or those instructions can be more open to interpretation…

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