Here's an RESP strategy for parents and grandparents that goes beyond the basics

financialpost.com:

Registered education savings plans (RESPs) are used to save for and fund post-secondary education expenses. Most people know the basics, such as how the government deposits grants to the account to match your contributions. But a good RESP strategy goes beyond the basics and considers the type of account, the investment opportunities, and the tax and estate implications.

Now that kids are heading back to school, here is a lesson for parents and grandparents on the ins and outs of RESP accounts.

Group RESP accounts, known as scholarship plans, are heavily promoted to new parents. These accounts tend to have high fees, penalties for missing contributions, conservative investments with low returns, and restricted eligible post-secondary programs.

Regulators like the Ontario Securities Commission warn consumers about these drawbacks to pooled RESPs. Fathers like me who are financial planners encourage clients to open individual RESP accounts. If you have more than one child, a family RESP may be a good option.

Family RESPs can be used for multiple children. A parent can open a family plan if they have two or more children, or a grandparent can open an account for their grandchildren. Family plans allow the subscriber to add future children after they are born.

The beneficiaries must be blood relatives, which includes children, stepchildren, or adopted children from the same family, but not cousins. So, a grandparent with multiple grandchildren might open different RESP accounts for each family.

The primary advantage of a family RESP is that the government grants and income can be withdrawn for any beneficiary of the account. The withdrawals can be used disproportionately, depending on the needs of each beneficiary. A