RESP payments to a designated educational institution

An RESP may also provide for payments to be made to a Canadian designated educational institution at any time. For example, payments could occur when the plan is left with only a small amount of cash after the subscriber withdraws the contributions as a refund of contributions and one or more of the requirements for accumulated income payments (AIPs) are not met. Generally, the terms of a plan should provide that, if an amount is left in the plan and the conditions for an educational assistance payment or AIP are not met, that amount will be paid to a designated educational institution in Canada, or to a trust for such an institution.

Date modified:

2016-01-12