However, to avoid the potential decision deadlock that may occur if an RESP has two co-subscribers, perhaps joint subscribership should be avoided by Quebec residents unless each appoints the other as
successor subscriber by will.
Presumably, your financial institution does not allow you to name
a successor subscriber in your RESP contract, in which case, your financial institution is partially correct.
The trustee of the testamentary trust could be the person the original subscriber would have appointed as
successor subscriber.
If
the successor subscriber is a person, the original subscriber is essentially giving that person the RESP contributions and, if the conditions for an AIP are met, the after - tax investment growth realized from those contributions and from the CESGs.
Such contractual terms are rare and, even if they exist, it may be best to plan around them, if possible, and appoint
a successor subscriber by will.
The executor would not (personally) become
the successor subscriber, because the contribution comes from estate funds, not from the executor's personal funds.
So, the value of that interest will likely belong to the residuary beneficiaries of the estate unless the joint subscriber appoints
a successor subscriber by will.
It may be intended for the beneficiary or beneficiaries of the plan, but the new
successor subscriber can decide what to do with the RESP.
The original subscriber can minimize (and likely eliminate) that possibility by appointing a testamentary trust as
the successor subscriber.
If an RESP has joint subscribers, each needs to appoint
a successor subscriber (and, preferably, the same one) because both may die at the same time.
If that happens, the RESP would have two co-subscribers, the surviving subscriber and
the successor subscriber (each having a one - half interest as tenants - in - common.)
But the original subscriber can not compel
the successor subscriber to preserve the RESP for the benefit of its beneficiaries.
The terms of the contract may allow the subscriber to designate
a successor subscriber by form, or may provide that the personal representative of a deceased subscriber automatically becomes the successor subscriber.
Appointing
a successor subscriber in the will of the original subscriber will likely ensure that the goal of the original subscriber when the RESP was established will be realized, even after the death of the original subscriber.
Remember that when you name
a successor subscriber, they become the owner of the RESP.
However, you can include a clause in your will to name
a successor subscriber, like the child's father in your case, Wayne.
Not exact matches
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