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Wealth Management

Your needs

Invest in your children's and grandchildren's education

Invest in your children's and grandchildren's education

  • Estimate the potential cost of your children's post-secondary education by considering:
    • their program of study (technical or university)
    • whether they will attend a public or private CEGEP
    • their place of study (Quebec, another Canadian province or abroad)
    • where they will live during their studies (e.g., university dorm or apartment)
    • the profession they might select
    • any income from a part-time job
  • Use the Desjardins Registered Education Savings Plan simulator to determine the amount you'll need to put aside.
  • The Registered Education Savings Plan (RESP) allows you to:
    • easily build capital to finance your children's and grandchildren's post-secondary education
    • get tax-free investment returns
    • qualify for government grants
    • split your combined family income

Family Plan

  • You can designate more than one beneficiary.
  • Beneficiaries can be:
    • children (by blood or adoption)
    • grandchildren
  • If a beneficiary quits post-secondary studies, the funds can be used by another beneficiary.

Individual (non-family) Plan

  • Only one beneficiary may be designated.
  • The beneficiary doesn't have to be related to you.
  • The plan can be transferred to another beneficiary under certain conditions.

Canada Education Savings Grant (CESG)

RESP beneficiary must be under 18, have a social insurance number (SIN) and reside in Canada.

  • Main features:
    • Grant amount varies according to net family income:
      • maximum lifetime amount of $7,200 per beneficiary
      • annual maximum of $600 (with additional grants on the first $500 of contribution, under certain conditions)
    • Option of carrying forward unused contribution room.

Québec Education Savings Incentive (QESI)

  • RESP beneficiary must:
    • be under 18
    • have a social insurance number (SIN)
    • reside in Quebec on December 31 of the taxable year
  • Main features:
    • Grant amount varies according to net family income:
      • maximum lifetime amount of $3,600 per beneficiary
      • annual maximum of $300 (with additional grants on the first $500 of contribution, under certain conditions)
    • Option of carrying forward unused contribution room.

Canada Learning Bond

  • For low-income families
  • Remember that RESPs are made up of 2 components:
    • the contributions you've made, which you can withdraw tax-free
    • the income, including grants, which are taxable upon withdrawal
  • Make withdrawals in the form of:
    • capital only withdrawals if the beneficiary's income is high
    • educational assistance payments (EAPs) if the beneficiary has limited income (up to $5,000 in the first 13 consecutive weeks of postsecondary studies)
  • If the beneficiary decides not to pursue postsecondary studies:
    • Designate another beneficiary. Wait a bit. They might change their mind.
    • Transfer the RESP funds into your RRSP.
  • When closing the RESP:
    • Reduce the amount of tax due on any income generated by the investment by transferring it to your own RRSP or that of your spouse.
    • Transfer the funds to another beneficiary. Make sure closing it out doesn't put you in a position where you have to repay a portion of your Old Age Security Pension.
  1. Investment advisors are employees of Desjardins Securities. Desjardins Securities is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF).

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