Something I learned yesterday that may be beneficial to others.
If you have opened an RESP know two things: the EAP (gov grant) is taxable to the kid and the record of enrollment expires.
These are important if you have an unreasonable ex and/or put more money away than you need. If you withdraw $2000 of the EAP portion and only pay your ex $1000, the whole total is taxable to your kid. Or if you put away $40000 and only need $20000, you lose the opportunity for interest.
Definitely talk to a financial advisor. My partner will not need all the money he put away and has lost several years of interest opportunity by putting it in an RESP. He was looking for a tax shelter and to protect it for future need. Hindsight now tells him he should have saved it differently.
If you have opened an RESP know two things: the EAP (gov grant) is taxable to the kid and the record of enrollment expires.
These are important if you have an unreasonable ex and/or put more money away than you need. If you withdraw $2000 of the EAP portion and only pay your ex $1000, the whole total is taxable to your kid. Or if you put away $40000 and only need $20000, you lose the opportunity for interest.
Definitely talk to a financial advisor. My partner will not need all the money he put away and has lost several years of interest opportunity by putting it in an RESP. He was looking for a tax shelter and to protect it for future need. Hindsight now tells him he should have saved it differently.
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