“Can I invest in an RESP on behalf of my nephews?”
Submitted by: Heidi
A family plan can have more than one beneficiary. But each beneficiary must be:
- a blood relative to the person who opens the plan (for example, your children, grandchildren, brothers and sisters), and
- under 21 when you name them.
Nieces and nephews do not count as blood relatives under family plan rules. However, you are able to open an individual RESP for your nephews. Note that the Canada Education Savings Grant (CESG) and Canada Education Savings Bond (CESB) are based on the total contributions even if there are multiple RESPs, and not per plan. For example, if you set up an RESP and your brother sets up an RESP for the same child, both accounts cannot receive the maximum grant and bond.
Before you set up an RESP, make sure you understand the rules regarding contributions, government grant and bonds, and withdrawals. Learn more about RESPs.