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RESP family vs. individual plan.

12010 Views 4 Replies 4 Participants Last post by  moneyconcepts
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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