A recent Statistics Canada survey showed that nearly 90% of Canadians want their children to attend university or college.

Unfortunately, the same survey showed that only 40% of parents have actually started setting money aside for post-secondary education.

For this reason, planning to fund your children's education can be an important life goal and WPG can help.

Our representatives will provide you insight on education-specific saving and provide you with a workable plan to help you deal with the increasing costs and tuition expenses of post- secondary institutions.

Registered Education Savings Plan ▾

A Registered Education Savings Plan (RESP) is a federal government, tax-deferred education savings tool. RESPs allow a subscriber (an individual who enters into the RESP contract and names a beneficiary) to save money for a beneficiary’s post-secondary education.

RESPs offer the benefit of increased savings as a result of the government-sponsored Canada Education Savings Grant (CESG) program. This program will match 20% of the amount a subscriber contributes each year to the beneficiary, up to a maximum of $500 per year.

Based on income, if qualified, $500 is available from goverment plus up to 20% additional grants for your first $500 of contributions.

In-Trust Accounts versus RESPs ▾

Contribution Limit ▾

In-Trust Account	RESP	Most Beneficial
No Limit	$4,000/yr. Beneficiary, with a lifetime maximum of $50,000 per beneficiary.	In-Trust Account

Ability of beneficiary to use the funds for varies purposes ▾

In-Trust Account	RESP	Most Beneficial
Once minor children reach the age of majority, they may do with the assets as they please.	The beneficiary may only receive the assets while enrolled at a qualifying post secondary school.	In-Trust Accounts

Consequences if funds are not used for intended purposes ▾

In-Trust Account	RESP	Most Beneficial
No tax consequences	The subscriber (ex: parent) could forfeit income and gains earned on the contributions. In certain cirdcumstances, up to $450,000 in accrued income and gains on plans in existence for at least 10 years, and where all beneficiaries have reached age 21, may be rolled into the subscribers RRSP providing there is contribution room. Or, earnings can be taxed in the hands of the subscribers along with a 20% penalty.	In-Trust Accounts

Ability to regain original capital ▾

In-Trust Account	RESP	Most Beneficial
The contributor has no right to receive any funds held in the account because they belong entirely to the child beneficiary.	The subscriber (ex: parent) may receive a tax free return of capital at any time. However, this could trigger a repayment of the government grant.	RESP

Control over assets ▾

In-Trust Account	RESP	Most Beneficial
The trustee of the account decides how to invest the funds. However, all assets in the account belong to the named beneficiary.	The subscriber (ex: parent) controls the investments and decides when to pay the money to the beneficiary.	RESP

Government Assistance ▾

In-Trust Account	RESP	Most Beneficial
None	A grant is available on the first $2,500 of contributions if certain conditions are met, capped at $500 annually per child to a lifetime maximum of $7,200.	RESP

Investment Options ▾

In-Trust Account	RESP	Most Beneficial
No restrictions, although investments that generate income, like dividends and interest, are taxed in the hands of the contributor, not the child. Provincial trustee legislation must also be considered.	No restrictions although some financial institutions offer only certain types of investments.	RESP

Taxation of income and capital gains ▾

In-Trust Account	RESP	Most Beneficial
Capital gains are taxed in the hands of the child if the account is set up properly. All other forms of income other than secondary icome are taxed in the hands of the contributor until the child reaches the age of majority.	No taxes are payable on income and gains until accumulated earnings are withdrawn. At withdrawal, the accrued income is taxed in the hands of the student/beneficiary.	RESP

Tax filing ▾

In-Trust Account	RESP	Most Beneficial
The child should generally file a tax return to report capital gains each year. A trust tax return is also technically required.	No annual filings are required until the student starts making withdrawal. Thereafter, students must report the withdrawals on their tax returns.	RESP

Whatever your trust account needs, the representatives at WPG can provide you the knowledge and product, and referrals to help you establish and efficiently manage your trust.