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Just had our second child. We've had an RESP for the oldest since birth. Can anyone comment on whether we should convert the existing plan to a family plan or create a 2nd individual plan. Not sure if there are advantages to either that make a difference.

Either way we will be contributing $5k/year to get the maximum grant.
 

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Family Plan

Let's say you have 2 individual plans and contribute the max each year and each plan grows to $100,000 (just using round numbers).

If one child's education costs $130,000 and the others costs $70,000 you're stuck with money in one plan. If you had all $200k in a family plan you could allocate it out based on need and educational costs.

I say the family plan works out better in that type of situation.
 

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You can still move money from one child's plan to the other even if they each have individual plans. In both a Family & Individual plan, no child can receive more than $7200 in Grants. So, if you're oldest child goes to school, you would ask that the Grant be withdrawn first. That avoids that issue.
 

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Depending on the age gap between children, the individual plans might be the best option since the RESP must be terminated on or before December 31st of the plan’s 36th year. The beneficiary's age is irrelevant. So, if you set up a family plan and have children who are 6 years apart, you might have to terminate the plan before the last one uses it! I like the Individual plans. Have separate plans for each child and then they can even get involved down the road if you want them to know about the funds. They can budget their own money, they can add to it while working over the summer months or while apprenticing. Chances are you'll have one child that's great with money management and another that isn't. I would give them their own pool so if they blow through it that's tough. That's my 2 cents worth.
 
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