To make it easier for you to prepare materials for clients, we’ve developed these slide selections on how to save for a child’s education. We know you’ll want to customize them and add elements specific to your client, so we’re providing a Word file to make that easier.
Enjoy, and we hope this offering helps enhance your client meetings.
SLIDE 1
There’s more to saving for school than RESPs
SLIDE 2
47% of parents have yet to open an RESP, finds a survey by Chartered Professional Accountants of Canada.
SLIDE 3
Why RESPs are useful
- They can pay for college or university in Canada or abroad.
- They can pay for skill development at educational institutions in Canada certified by the Minister of Employment and Social Development Canada.
- The government will match up to 20% of your contributions.
- You’ll have access to the Canada Learning Bond.
SLIDE 4
Opening an RESP
- Register your child for a Social Insurance Number.
- Decide on an individual, group or family plan.
- Choose investments. (We’ll do this together.)
- I’ll help you open an account.
- Apply for the Canada Education Savings Grant and other benefits.
SLIDE 5
RESP limitations
- Maximum contribution of $50,000 per child.
- Some or all grant money will have to be repaid if your child doesn’t go to post-secondary school.
SLIDE 6
Other ways to save
- Living trust
- Life insurance
- In-trust account
SLIDE 7
Living (inter vivos) trusts
- Two types: revocable and irrevocable.
- Revocable trusts give you control over the money. Irrevocable trusts give you tax benefits.
- Your child gets the money at a day designated in the trust documents.
- Drawback: complex and expensive to set up.