The Gill’s accumulated $68,000 in an RESP for their daughter, Sam. Now Sam is 19 and in second year at university, taking three courses, but working part time and earning $22,000 a year. They have not taken any funds from the RESP as Sam has not really needed any financial help, as she is living at home.

Explain their options and what you would recommend to them regarding the RESP funds and what the tax implications are.

You can assume that they contributed $36,000 and got $7,200 in CESG grants, so that $68,000- $24,800 will be taxable income to Sam. Be clear and specific on what exactly you recommend they do.

Answer rating: 100% (QA)

The Gill family has several options regarding the RESP funds they have accumulated for their daughter Sam 1 Withdraw the funds The first option is to ... View the full answer