Missed RESP deadline? Don’t despair!

The deadline for 2002 contributions to a registered education savings plan (RESP) was Dec. 31. But even if you missed it, your child or grandchild is still entitled to a Canada Education Savings Grant of up to $400 for the year.

Even if you don’t have an RESP in place, the child does not forfeit the right to the grant. It can be carried forward to future years, to a maximum claim of $800 a year.

The following explanation appears on the Web site of Human Resources Development Canada, which administers the program:

“Starting January 1st, 1998, each child who is a resident of Canada began to accumulate grant contribution room regardless of whether or not the child is a beneficiary under an RESP. For example, if a child is born in 1998 but no RESP is opened for the child until the year 2001, the child will have accumulated a total of $1600 ($400/yr x 4) in grant contribution room by the year 2001. The maximum grant that can be received in any year is $800.”

For more information about the CESG, go to http://hrdc-drhc.gc.ca/hrib/learnlit/cesg/011/001_e.shtml<

Adapted from an article that originally appeared in the Internet Wealth Buier, a weekly e-mail newsletter that offers conservative investment advice from some of Canada’s top financial experts. For a three-month no-risk trial membership at a special rate of just $19.97 plus tax!