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  • RESP withdrawal

    Separated since 2010, no communication except through lawyers.

    I am seeking an RESP withdrawal for my D who starting College in Sept. The amount will be higher than her immediate need. I am currently the sole financial provider for the children as he does not have an icome.

    Since both of our signatures are required and he tend to want to control everything, I would like to know if he can prevent the release of the fund to D and keep portion for himself or wanted control over it.

    My intend was for D to have her share of the fund (divide among our children) to cover her school and living expenses. Any left over would be her to keep. That was our intention when we initially created this fund.

    Can ex request to keep half of the fund for himself thus forcing D to use only the remaining?

  • #2
    my understanding of the laws in that area, expplained by my bank manager was the REESP has particular rules for withdrawal by the child (it must cover the expense at that time only) In reality the RESP fund is owned by the contributor(s) and any interest or gains is owned by the children. So your answer would be no.

    As far as the remaining funds - if the RESP has both your names as the contributor - either one of you can remove what reamains of the original contribution at any time. I fyou remove it and give it to your child - that would be your right and nothing he could do about it. Please go to your bank, speak to the manager (not just anyone - make sure they really know the rules of RESP beyond taking a contribution) and discuss this issue and act accordingly. If you have telephone banking you can also odo this by the phone - again make sure the person you speak to understands the rules entirely. hope this helps - you have a chance to act if your name is listed as the contributor. Your child - learn what are the acceptable withdrawal rules versus providing receopts or invoices and again act accordingly.

    Comment


    • #3
      Thanks, the RESP has both names as contributors and we have the 3 children as benefiicaries.

      I've got a response from the financial advisor that growth and EAP portion has to be withraw with the proof of a qualified post-secondary school enrollment.

      I can not withdraw anything without the signature of my ex. I think since he has now set a trial date for October 2012 that this will not look good if he refuse to sign or release the funds for D. I am expecting that he will want to control every step and follow closely the spending of it.

      Comment


      • #4
        please call your bank that holds your RESP. I can tell you for a fact that the child can withdraw on their own at anytime as long as it matches up to an approved school expense. You mention you have three children and make it sound like they are all in the same account. Rules may have changed but we actually made our first REESP deposit the first year it became available - We had to setup a seperate account for each child. (I do not think we had the otion to make one big account because what would keep child 1 from depleating the REESP before child 3 even began post secondary education)

        So fact - Last year we had two REESP accounts in which I was the physical contributor but like everything else I had my ex as authorized signature (what is that called??) but my ex last year on her own went to the bank, one signature and she withdrew the entire REESP without my knowledge, She had the right to remove the initial deposits and she did. You can do the same. I can only add it to the "one more divorce issue to be resolved at a later date".

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        • #5
          I have a family RESP for my children. Since separation, I am the only one who has been contributing to the fund, but it is a family one, this way either of both of my children will have access to the funds.

          I found this to be the better option in case one of the children decided not to go to college or university, the money would be there for the other.

          Check with your bank, etc on the rules and regs! My children are only 11 and 7 so have no idea about the particulars of when it comes to taking the money out.

          If your X tries to prevent you from withdrawing the money for the child's education, perhaps you could look into an emergency motion or whatever it's called to have it done.

          Good luck
          Ang

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          • #6
            I finally manage to get my STBX to communicate but he is animate that he wants to do the withdrawal and deposit in a joint account where we can pay D bills for school.


            The last thing I want is a joint account with him so I reply to him stating that it would be better to deposit it in D account. I would prefer her to administer it herself. For security purpose she can store part in a TFSA for later. i also propose that he follow-up with her instead on her spending.


            The problem is that I doubt that he will go for this as he wants control.

            Do you think a Judge will favor parent to administer the D(18yrs) funds or the D to do it considering that we have not collaboration between us?

            Comment


            • #7
              I think a parent and a judge needs to see a young woman who needs to begin taking care of herself. As an example my son had control of $7,500 when he was 14/15 years old. He earned it and he took care of it and his plans to which he began working at the age of 12. My two daughters are the same. Kids need to learn and better under the guidance of mom and dad then having to do it cold turkey at much larger stakes in a few years.

              Dad needs to grow up and realize that his controlling days need to be over. A big stretch but I imagine control indeed had a big part in what is behind "what got you here today" and I am not sure if you are heading to court but now you are going to have to temper the right thing to what it will cost you to make it happen. Is it possible that by the lawyers are done you could just replace the funds yourself.

              Why do you not put this out there - he gets half, you get half and give it to your daughter. half is better than none??? But I shall put it to you one more time, your financial advisor is not holding these funds for the RESP and you will get a different answer from your bank or other who will have the say and I would bet my shorts the RESP account has an either or not both signatures. If you feel this strongly about it, please check with the fund controller who will have the correct answers but in the end if the RESP is rolled to your daughter's sole control -- what judge would see this as wrong or bad???

              Comment


              • #8
                Thanks ddol1, I verified with the financial advisor as the funds are with his company and not the bank.

                Both signatures are required and I cannot do anything without his.
                I actually thought about dividing the fund in half but the financial advisor advise me against it as this will have a negative impact on it thus killing this idea.

                I would love to avoid through this again in 3 years for my younger one.
                I am trying to work out something with him that we can both live with and thought it will be wise to get also an agreed approach for the younger in the final agreement.

                If the funds were small, I would not even bother with all this but we are talking about amounts that can cover 100% entire education and living expenses for each child and even possibly more.


                I thought about giving him full control on the base that I will use it only to pay the children education. But my issues would be that while this may work with D, he does not have good relationship with the younger one and this will not work with younger one.

                We are actually on the trial list for October as we have other issues. Mind you that although it will be costly I am looking forward to put a end to this non sense.

                Comment


                • #9
                  I do not know if this will help if not - sorry, it is hard to understand the details to help you - ultimately you are going to need to understand and deal with your RESP investment firm to make the steps you desire. You may need a judge to "force" him to sign over the original RESP but in the end you are not forced to remain with that firm if it does not fit your needs. It is easy to roll plans over.

                  Ok sounds like in times of divorce your particular investment firm should have a policy to handle this type of situation. Not sure about a negative impact but I will just leave it as your issue dealing with a financial institution that can not accomodate a customer's difficulty. Here is the only other thing - have a judge order your ex to sign off the original investment and you end up selling it out and rolling it into a new investment with that firm or any other that you chose (change your institution and there could be a small delay in the transfer). But you wanted it to be in your daughters name..... sounds like you will need to understand the RESP system to do this for two different girls but you want the eldest split off so she has full control of hers.

                  I do not know if this may help you - another poster was dead set on needing to have a family plan to allow the transfer of unused funds from one child to the next..... In our case, the Bank manager confirmed for our children that individual plans that have an excess can be cashed out as unused RESP funds or the excess an be rolled over to any sibling so there is full flexability with seperate plans for each child. Easy as one two three! -- good luck in setting up your daughter's future schooling!!!!

                  Comment


                  • #10
                    Always keep in mind- RESP is YOUR money

                    I am going through the same experience as stated above - large RESP for two daughters, joint signing with Ex needed to access funds. I wish to administer my half of the fund independently since I do not trust how my Ex will distribute to my kids (buying cars, buying clothes, etc,etc out of RESP is something I am not a fan of).
                    Ex will not sign off on anything other than specific expenses from the post-secondary school.
                    Folks need to keep in mind that all monies, including grants/investment gains, are YOURS. The kids are not 'entitled' to this fund. It is up to the parents to distribute accordingly. I want full control over how my half of the fund is distributed so it is not flushed away...trying to get my Ex to sign off on larger withdrawal sums is not happening. I am fearful that I am headed to court which will, ultimately, just throw away 15+ years of RESP accumulation...such a waste.

                    Comment


                    • #11
                      i recently sent my resp holder an affidavit having my ex removed was a piece of cake. the plan administrator was very helpful in getting this change done quickly perhaps you could give them a call

                      Comment


                      • #12
                        Thanks for the tip - I am meeting with a lawyer next week and will certainly bring this forward.

                        Comment

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