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RESP Grant Contributions from Third Parties

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  • RESP Grant Contributions from Third Parties

    Lots of threads already on RESPs for kids who's parents have separated. I'm curious though - If a third party has and solely owns a RESP on a child (grandma, aunt, godfather, step parent) how does this factor into the equation when the child goes to school when neither parent actually has any right to the money, nor the grant portion? I don't even think either parent would have any right to call and inquire with HRSDC about a policy held by a third party or the grant monies they have earned...

    I've seen previous threads that say the grant portion is deemed to be the child's contribution but you cannot deem the child has contributed what you do not know. And if the RESP is indeed owned by a third party then I would think that it cannot be even entered into the equation?

    I ask this because it occurred to me - the child's contribution comes off the top. The balance is then proportionally shared between the parents and their respective incomes. So then many paying parents could technically have a third party open a RESP and then the grants wouldn't count as the child's and they could use the grants toward their own contribution for the child?

  • #2
    Personally I think the grant portion would still count as the child's portion. The government offers that money to the child, not the one contributing to the RESP. I am not sure this backwards way of thinking, would land anyone very far in the court room. The point of opening an RESP is for the child, not to benefit the parent.

    If someone wants to open something that the other parent or child can not touch, open a regular RRSP or TFSA, because the grants from the RESP are for the child.

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    • #3
      Berner Faith - My point is how can anyone count the grant monies as the child's if they don't know about it. And furthermore - How can grant money that neither parent has any control over be counted as the child's when neither parent can ascertain that it will actually go to the child? (remember, it is the policy holder that will decide what happens to the money (they could fold the account, etc.).

      Perhaps I have not explained myself in my originating post. But anyone can open a RESP on a child. I am not debating what avenue they should use to invest. I'm suggesting there is a flaw in how contributions are viewed by the courts and parties. To put it simply there IS a work around as I see it - no one can forecast an unknown 3rd parties contributions and subsequent grant monies.

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      • #4
        I believe if one has the SIN for the child they can look up how much of the grants have been awarded, thus either parent would have the ability to know there is grant money. The child must prove they are enrolled in school in order to access grant money.

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