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Posts Tagged ‘Education Planning’

How Contributing To, Withdrawing From & Investing in RESPs Affects You

Registered Education Savings Plans are the best way to save for your child’s education. While the contributions themselves are not tax-deductible, the federal government will contribute an extra 20% of your yearly contributions up to $500.00 per year at minimum, depending on your family income. You can start contributing to an RESP for your child as soon as they have a Social Insurance Number. However, the latest date to start contributions that qualify for grant payments is the end of the calendar year before your child turns 15.

When withdrawing from an RESP, it’s important to consider your child’s taxable income. The contributions you have made may be withdrawn tax-free for education purposes, but the grant payments and return on investments will be included on your child’s tax return.

 

Click here to read more from the Financial Post

 

Please contact us using the “Book and Appointment” form below to discuss any questions about opening or withdrawing from RESPs.

RESP -BC Training & Education Savings Grant

All children born on or after January 1, 2007 with a Registered Education Savings Plan (RESP) and a resident of British Columbia when they are six years of age will be entitled to receive the BC Training Education and Savings Grant.

There are 3 basic criteria to receive the grant:

  • The child must be born on or after January 1, 2007
  • The child must have an RESP before they turn seven
  • The child must be resident of B.C.

In-Trust For Accounts – Facts and Fallacies

Informal trusts, also called “In-Trust For” (ITF) accounts, have been in existence for a long time in Canada. Now that more clients are moving from country to country, the use and value of these accounts are being questioned. It’s important that you keep the focus on the purpose and the tax implications of ITF accounts.

Here are some points to think about when discussing ITFs with your clients.