What is a Registered Education Savings Plan?
Registered Education saving plan also known as RESP is basically a contract or an agreement that is made between a person or an organization and an individual who is also known as the subscriber. The organization or the person with whom the subscriber makes an agreement is called the promoter. The contributions to registered education savings plan is made by the subscriber or any other individual who officiates for the subscriber. This is how the Registered Education saving plan earns substantially.
Here in Canada a Registered Education saving plan the subscriber mentions one or more people or beneficiaries and gives his or her consent to financially offer help to them. Anybody can be subscriber in Registered Education saving plan. There are no restrictions on the individual that are placed for becoming a subscriber. An individual, his or her spouse, or any partners with common law can become joint subscribers with the Registered Education saving plan scheme. An original subscriber under Registered Education saving plan can even be a person who is a public primary care giver
of a particular beneficiary. This person can be an agency, a department or an institution which cares about the beneficiary and concerned about the beneficiary.
The person or the subscriber can even be a public curator or a public trustee of the particular province in Canada where in the beneficiary actually resides. An individual can become a subscriber if he or she is in one of the following situations. If the individual is a partner of common law or a spouse, or a former partner of common law or former spouse of an original subscriber and the individual gets the original subscriber’s rights in Registered Education saving plan by abiding by the court order or a written contract for say, division of property after a dissolution of the relation ship, then the individual can apply to become a subscriber. If the individual has obtained rights as a public primary giver under Registered Education saving plan then he or she can become a subscriber. If the individual has simply obtained the rights to become a subscriber in RESP or is continuing subscriber’s duties by contributing to the beneficiary after the original subscriber has expired, then too the person can become a subscriber.
An individual can become a beneficiary only is the SIN of the individual is provided to the promoter before the person is designated as a beneficiary. Also, an individual can become a beneficiary if and only if the person is a resident of Canada when he or she is designated as a beneficiary. A family plan is a scheme which allows or permits a subscriber to contribute to more than one beneficiary. The beneficiary must be related to the subscriber either by adoption or directly. The family plan scheme was started in the year 1998. The beneficiary who is designated under this scheme must be less than the age of 21 years. The registered education savings plan permits savings for the development and the education of a beneficiary through a subscriber and a promoter.