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  • RESP going to be lost

    We have an outstanding RESP issue at hand.
    We stand to lose everything as of Thursday March 22nd. (So I've only got till Wednesday to have this resolveD)
    Both of us were paying into the plan and it became inactive because ex defaulted on payments and (i couldn't afford to pay this plus Section 7 expenses).
    We are in a situation where there are 3 options - 2 (which I suggested) in which our child will benefit and at maturity (over a period of 4 years) will gain $ 60K for herr educational plans and the 1 option (which he suggested) in which our child stands to lose 35K if we go with his options. (he doesn't want to pay into the plan and convert it into a lump sum payment).

    We are at an impasse.
    I have told him I will not sign his Option, and I've urged him to go with either of the 2 options that I've said
    1) pay the full defaulted amount (and deduct what he owes me for section 7 expenses) and continue with both of us splitting the monthly payments OR
    2) we get the cash value of the RESP and then I buy him out of his share and then I would then continue to pay to the plan on my own.
    He refuses to respond.
    Both of my options give our child the best investment.

    Is this something that can be brought forth in an emergency motion, and when does the NEwmarket courts hear those motions.

    Can the judge make rulings on these matters as they pertain to our child being the beneficiary.

    I was just recommended by the OCL that I was to get sole custody. I'm just waiting for the paperwork.

    I need help, because if we don't resolve this - as of Thursday March 22nd - our child gets $ 0

    I can't believe what a vindictive person would go to such lengths to get back at someone and in the process make decisions that will affect our child's educational future.

    I need some help please. Thanks.

  • #2
    How does an RESP become inactive?

    I have RESP plans for both my children with my new wife and we pay what we can as well as all monetary gifts they receive for different occasions. There are months when there are no deposits but the resp accounts still are active.

    If your child doesn't attend post secondary school, the only part of the resp you would lose would be the gov't portion. I just don't understand how you could lose all of the money you had invested in the resp by not contributing to it regularly.

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    • #3
      Ex filed a bs bankruptcy and the sleaze trustee seized our sons RESP. At trial ex said he surrendered it to Trustee (not true) and that he was generously willing to reinstate it (also not true). All that whilst claiming his income was under 40k. Yeah, and the Judge went for that load of bull too - not quite. Total sleaze. Him, and his lawyer. No conscience. No guts. No scruples.

      I fought it for a long time. In the end it got lost in a sea of lies and fell on deaf ears. I had to walk away from that issue. It's disgusting .. Your situation and mine. Totally disgusting.
      Last edited by hadenough; 03-15-2013, 11:05 PM.

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      • #4
        Our RESP is on a monthly contribution. He defaulted in the monthly contribution and the grace period to make up the contribution is up.
        It is inactive and in order to re-activate the account (do something) you need to either pay what is owing and continue with the monthly payments or convert it to a lump sum.

        Because it has been inactive, we need both signatures to sign and reactivate it. If we don't get both signatures, the whole RESP account is lost - prinicipal and all.

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        • #5
          Originally posted by hadenough View Post
          Ex filed a bs bankruptcy and the sleaze trustee seized our sons RESP. At trial ex said he surrendered it to Trustee (not true) and that he was generously willing to reinstate it (also not true). All that whilst claiming his income was under 40k. Yeah, and the Judge went for that load of bull too - not quite. Total sleaze. Him, and his lawyer. No conscience. No guts. No scruples.

          I fought it for a long time. In the end it got lost in a sea of lies and fell on deaf ears. I had to walk away from that issue. It's disgusting .. Your situation and mine. Totally disgusting.

          So did you lose your son's RESP ?

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          • #6
            Yes. It's long gone. Allegedly some of it is in the Trustee's a/c. I think it's BS and the OSB/Federal Regulator is totally complicit.

            I have fought this issue long and hard. I have been met with a wall of collusion and bullshit. It is gone. I won't be able to recover the money. As yours is/was - monthly contributions were made. Then ex stopped paying into it. He had agreed to make the monthly contribution but failed to. Can't trust a snake.

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            • #7
              Our sons was not near 35k and I was super pissed for a long time, (still bugs me) so I can only try to imagine how much such a shameful, selfish waste it must be for you.

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              • #8
                Wow. I can't believe this.

                Was it a loan deposited to RESP, that was defaulted on???

                Seems to me there is something wrong here.....

                How can you lose the principal on a voluntary pyment plan default (unless maybe it was a loan to be paid back).

                WHatever - how do I make sure this doesn't happen to my son?

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                • #9
                  Send a letter by Reg'd Mail to the Fund Mgr and advise them that you want monthly statements mailed to you, that your signature is req'd for any changes and that you expect to be notified immediately if there is any unusual activity.

                  Other than that: have the contribution set up as a pre-auth pymt coming out of your account. I found out after the fact that the trustee snatched the RESP. I have asked where the money "is" and requested proof that the trustee has not spent it (I'm sure he has) and I've been given no information.

                  I have written extensively to the Federal Regulator, my MP etc re: this issue and several others. All useless.

                  I now have the Minister of Finance's attention. I'm not holding my breath but I'm going to keep on pushing for answers. I've been ripped off and so has my son. They have not heard the last of it, or me. I'll ask them 100 more times, if I have to until I get my answer, and proof.
                  Last edited by hadenough; 03-16-2013, 12:14 AM.

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                  • #10
                    Originally posted by wretchedotis View Post
                    Wow. I can't believe this.

                    Was it a loan deposited to RESP, that was defaulted on???

                    Seems to me there is something wrong here.....

                    How can you lose the principal on a voluntary pyment plan default (unless maybe it was a loan to be paid back).

                    WHatever - how do I make sure this doesn't happen to my son?

                    Wretchedotis - no it was not a loan deposited to RESP - it was our monthly contributions that he defaulted on. They give you a grace period of (3 years) to get caught up, and he always said he would - he never did.....and here we are.
                    If we don't both sign the papers to say we will do "something" to the plan - either convert it to a lump sum plan (where we lose units and a total of $ 38K by this action) or we pay what is owed on the plan and then continue the monthly payments (which only works out to $ 80 each person) and our child getsd $ 60K at maturity.

                    I even told my ex that when the cheque comes at maturity - we will ensure that neither of us will get it - that it will be directly made out to our child on the understanding that it is for HER education. That way, neither party feels like one has more control than the other. And that the beneficiary is who it should be.
                    This might be something you could put in a legal document - according to the RESP co . hope that helps.

                    For me this is important so I can make up the necessary paperwork, or whatever it is I need.
                    Will the courts hear a request such as mine ? Or is this considered a civil matter and not a Family law matter ?
                    I suppose my question s, is this something that I can go to court and ask the judge to rule and get his name off signing the document - that way I can still save the account for our child.
                    right now it requires both signatures - He wont sign the document and the RESP company cannot process and do anything if we dont get both signatures.

                    I don't have any more time. By Thursday - we lose the RESP - so I need to know what to do.
                    Do I write an Offer to Settle and send it to him on Monday or do I go to court to do an Emergency motion to get his name taken off the account where the beneficiary is our child.
                    And in order to do an emergency motion. Do I have to serve him with the papers on Monday ? I really only have 2 days to do this.

                    I have been sending my ex text messages and emails to ask him to reply. He has refused to answer. There is just no response. I never thought a person would be so vindictive and do this to our child just to spite me. Very pathetic and ignorant.

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                    • #11
                      How much notice did you have that this was going to happen?? To me it is not an emergency motion.

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                      • #12
                        Originally posted by standing on the sidelines View Post
                        How much notice did you have that this was going to happen?? To me it is not an emergency motion.

                        I have been telling him for months now that it was going to happen.
                        I asked him to let me know by March 15th so that we could deal with this.

                        The plan terminates March 22nd.
                        I've been waiting for him to sign documents and give me his decision, but he won't answer, neither he or his lawyer have answered. They have had months to get backto me.
                        Last edited by Mess; 03-16-2013, 05:49 PM. Reason: to fix quote

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                        • #13
                          hindsight is always 20\20. When you first mentioned it to him you should have given him a two week time limit then. You waited way too long and I really dont think there is much you can do in regards to an emergency motion.

                          Is there anyway for you to make the catchup payments to keep it current then take it to court later to change things??

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                          • #14
                            I just spoke to him - he won't sign and he's told me that he doesn't have the money to pay up. I offered to pay and continue the investment on my own but that it be signed over to me. I would pay him for his portion of the investment to date. and he sign it over to me to continue for our child.
                            He knows that it's 24K (his plan) versus 60K (my plan) b- but he won't do it.

                            Good point - I'll check with the RESP company.

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                            • #15
                              I hope it works out for you. So sad when an ex is so focused on doing anything they can to be a pain in the ass to someone who is trying to do the right thing. Looks like he doesnt care how his stubborness will harm his child, just as long as he can stick it to you.

                              Comment

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