Family Plans have one or more beneficiaries. Each beneficiary must be the subscriber's blood or adopted relative, under 21 when named, and a child or grandchild of the subscriber.

Individual Plans have only one beneficiary. That beneficiary, who can be over 21,does not have to be related to the subscriber.

The Canada Education Savings Grant (CESG) is a Government of Canada incentive that pays 20 cents on every dollar you contribute to your RESP, up to a yearly maximum of $500 per beneficiary. The CESG goes directly into your RESP plan until the beneficiary reaches age 17.

Note: Depending on the family’s net household income, the children may be eligible for additional CESG.

The Canada Learning Bond (CLB) is a Government of Canada grant for modest-income families. If your child was born after December 31, 2003, and your monthly Canada Child Tax Benefit (CCTB) payment includes the National Child Benefit Supplement, the Government of Canada will make a first payment of $500 to your child's RESP and additional annual payments of $100 to the plan for up to 15 years.

What is the Alberta Centennial Education Savings Plan?

The Alberta Centennial Education Savings Plan (ACES) is an Alberta Government grant that contributes $500 to the RESP of every child born to Alberta residents in 2005 and beyond. Additional grants of $100 are available to children attending school in Alberta at ages 8, 11, and 14, provided their parents invest at least $100 in an RESP in the year before applying for the grant.

To set up an RESP and receive government grant money, your child needs a birth certificate and a Social Insurance Number (SIN). Once you have set up their RESP, your ATB Financial or ATB Investor Services representative will apply for all eligible grants on your behalf.

An ATB Investor Services representative can discuss options if your children have extensive education plans and you've already maximized your RESP contributions.

Here are some things the child named in the RESP can do if he decides not to attend a post-secondary school:

• Designate an alternate beneficiary.
• Transfer the income earned (to a maximum of $50,000) into an RRSP, provided there is unused contribution room in the RRSP plan.
• Withdraw the funds. (Note: Income earned in the RESP is subject to a 20% surcharge in addition to your marginal income tax rate and grant money must be returned to the government.)
• Donate the income earned in the RESP to a post-secondary institution.