Kids portion of RESPs

[Diverged]

Another question... Is it possible for my kids to set up their OWN RESP for themself under their plan or is this unnecessary

Please advise thanks

 

[Challenger]

Adult can open RESP for themselves, but depending on circumstances it may or may not make sense:
https://www.canada.ca/en/services/benefits/education/education-savings/opening-plan.html

 

[rockscan]

Im not sure where you are getting the idea the savings account would be their father's account. They can have their own high interest savings account on their own with their regular banking account. You may want to go to the bank with them and meet with a financial advisor. There are no fees to do so.

The kids would not be able to open their own RESP at this point if they are 17. It is either 17 or 18 that contributions are no longer allowed. If they are younger, you could speak to a financial advisor again to discuss. If anything they would be eligible for some additional grant money.

As far as how the expenses are split…the court sees it as 1/3 to the child not their whole savings. They have three to four years of school to get through so using it all in first year is unfair. Your kids should apply for any and all grants possible.

From there, the expense would be split 1/3 to the child and then the remaining two thirds proportionate to income of the parents. Your ex will have his expenses paid by his own funds.

Best advice is to set up an appointment for you and your kids with their bank's financial team. They will be able to help the kids muddle through the savings issue. Plus you will be a part of the discussion to understand more.

 

[Diverged]

Thanks. The reason I ask is because my children do have their own bank account already, under their own name

 

[rockscan]

Yes this is odd.

Make an appointment at the bank with them. Take them there and have them speak to the financial advisor. It will also help them learn about savings and investments. This is a great learning opportunity for them.

 

[Diverged]

Thank you rockscan. I will do this. My kids are doing really well at saving and this will be a beneficial step for them and will empower them to learn first hand about savings plans.

 

[rockscan]

He may have had their best interest in mind but it is best for them to learn themselves. A lot of kids don't learn about money or saving or being smart because their parents do it for them. Learning now will help them. The financial advice will help them going forward as they deal with student loans, credit cards, savings, investments etc!