What can an RESP be used for?
An RESP can be used for tuition and many education-related expenses.
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Tax Credits for Students
Students may be eligible for tax credits even if there is no income. Common refundable tax credits for students include: Canada training credit, tuition, education, and textbook amounts.
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Estate Planning
In the context of both family law and bankruptcy proceedings, an RESP has been found to be an asset of the adult subscriber and not that of the child for whose benefit the RESP is intended.
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Non-Residents & RESPs
If an RESP subscriber or beneficiary is (or will become) a non-resident, there may be some Canadian tax consequences, as well as tax consequences in the foreign jurisdiction.
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Creditor Protection
Money held in an RESP is generally not protected against creditors of the subscriber.
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Canada Learning Bond for Adults
Adults can also open RESPs for themselves. Adults born in 2004 or later may also receive the CLB for themselves until the age of 21.
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RESP Tax Implications
RESPs are registered accounts that permit tax-free investment growth, however, there may be tax implications on withdrawals.