Who can become a beneficiary?

Under proposed changes, you will be able to designate an individual as a beneficiary under the RESP only if:

• the individual's SIN is provided to the promoter before the designation is made; and

• the individual is resident in Canada when the designation is made.

Exception - The residency requirement does not apply when the designation is made in conjunction with a transfer of property from another RESP under which the individual was a beneficiary immediately before the transfer.

Family plans are the only plans that allow the subscriber to name more than one beneficiary. Each beneficiary must be related by blood relationship or adoption to each living subscriber or any deceased original subscriber.

For family plans entered into after 1998, each beneficiary must be less than 21 years of age at the time he or she is named as a beneficiary. When one family plan is transferred to another, a beneficiary who is 21 years of age or older can still be named a beneficiary to the new plan.