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Family Plan

In a family plan, you can name one or more children as beneficiaries of the RESP. The children must be related to you. They may be your children - including adopted children - grandchildren, brothers or sisters.

Individual Plan

An individual plan is for one person. The person does not have to be related to you.  Since there are no age limits, you can even set up an RESP for yourself or another adult. The education savings incentives described in this booklet are only available to children 17 years old or younger.

Group Plans

In a group plan, your savings are combined with those of other people. The amount of money each child gets is based on how much money is in the group account and on the total number of students of the same age who are in school that year.  Group plans are offered and administered by group plan dealers. Each plan has its own rules. Be sure to read these rules carefully and shop around to get the plan that best suits your needs. Usually, group plan dealers must put the money in low-risk investments. Generally, you have to sign a contract agreeing to make regular payments into the plan over a certain period of time.

  You can name only one child in a group plan and the child does not have to be related to you. Since each group plan is different, it is important to ask your group plan dealer for details.

  A group plan may be a good choice if:

  You can make regular payments into the RESP;

  

• You prefer to have someone else decide how to invest the money for you; and
  
• You are fairly sure that the child you are saving for will continue education after high school.
  

  Make sure you ask your group plan dealer what happens to your money if the child does not continue with education right after high school or if the child decides to go to school part time. The beneficiary has up to age 26 to attend a post-secondary educational institution using the money in the RESP.