RESP – What is it? Parents are always looking into the future for our children, and nothing says this more clearly than planning for our children’s education. But what happens when the person who opened and managed that RESP — known as the subscriber — dies?
It’s the sort of question few families want to contemplate, but it is important in long-range financial and estate planning. The most recent numbers, published in the Canada Education Savings Program Statistical Review 2023, show that there are now over $89 billion invested in RESPs across Canada and more than 6.6 million beneficiaries using their savings. That is a huge pool of family savings bound by rules that need to be navigated carefully after the subscriber’s death.
When you know the rules for beneficiaries of an RESP in Canada and how subscribers fit into estate law, you can take steps to make sure that money fulfills its intended role — putting a child or children through post-secondary studies — instead of getting tied up in legal or tax knots.
Understanding The Subscriber’s Role In An RESP
The subscriber is the individual who opens the RESP and makes contributions. They may be a parent, grandparent, legal guardian, or even a non-relative in the case of an individual plan. The subscriber:
- Contributes money within the RESP contribution limits
- Applies for government incentives like the Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB)
- Controls withdrawals and decides when funds are paid out for Education Savings Accounts, withdrawal rules
But when the subscriber dies, control of the plan becomes uncertain unless specific arrangements were made.
What Happens Immediately After The Subscriber’s Death
When the subscriber dies, the RESP does not automatically terminate. Instead, it becomes part of the deceased’s estate — unless another subscriber or successor has already been named.
Here’s what typically happens:
- The RESP is frozen temporarily. The financial institution managing the plan will pause any withdrawals or contributions until ownership is legally transferred.
- The RESP is valued. The fair market value is calculated as part of the deceased’s estate assets.
- The estate executor or administrator must determine whether a successor subscriber was named and whether the plan can continue.
- CRA and the provider are notified so that the RESP remains compliant during the estate transition.
Without a successor subscriber, the plan may eventually have to close, and all funds are distributed according to RESP regulations.
Successor Subscribers: The Easiest Way To Keep The RESP Alive
A successor subscriber is the person named to take over the plan after the original subscriber’s death. This can be done when the plan is opened or later by contacting the RESP provider.
Naming a successor subscriber ensures continuity — contributions, grants, and investments can continue as normal. In most cases, the new subscriber must be:
- The spouse or common-law partner of the deceased subscriber, or
- A legal guardian or person authorized to act on behalf of the beneficiary
The successor subscriber assumes full control of the plan — they can continue to contribute up to the lifetime limit for RESP in Canada ($50,000 per beneficiary), manage investments, and make withdrawals when the child starts school.
If no successor subscriber is named, things get more complicated.
When No Successor Subscriber Exists
If the deceased did not appoint a successor, the RESP becomes an asset of the estate. From there, three outcomes are possible depending on the plan type:
1. Individual RESP Plans
If the plan was individual (for one beneficiary), the RESP may be collapsed and the proceeds distributed according to the will. The government grants (CESG and CLB) are typically returned to the government, while the remaining balance — including investment income — goes to the estate or beneficiary, depending on legal instructions.
2. Family RESP Plans
Family RESP plans have more flexibility. Another parent, guardian, or family member may request to become the new subscriber. This is usually approved if the person is related to the beneficiaries by blood or adoption.
3. Group RESP Plans
Group plans are heavily rule-based and managed by promoters. In these cases, the funds are subject to the group contract terms. Often, the RESP terminates upon death, with the subscriber’s estate receiving contributions and forfeiting grants and growth.
Each provider follows its own terms, so it’s crucial to check your plan documentation in advance.
RESP In Estate Planning: Why It Matters
Planning for the continuation of an RESP should be part of any well-structured estate plan. Many Canadians focus on distributing real estate, investments, and life insurance proceeds, but overlook education savings.
Integrating the RESP into your will can ensure:
- A named successor subscriber is recognized legally.
- Contributions up to the RESP contribution limits can continue without delay.
- The RESP for the child’s education remains active and properly funded.
- The child’s access to government grants stays secure.
Without these provisions, the RESP can easily fall through administrative cracks, leading to loss of growth and grant repayment.
Transferring RESP Ownership After Death
To transfer ownership, the estate executor or surviving spouse must:
- Provide proof of death (death certificate).
- Submit legal documents such as the will, probate, or letters of administration.
- Complete the provider’s successor form naming the new subscriber.
- Verify grant and bond eligibility to ensure compliance.
Once accepted, the RESP continues under the new subscriber’s control, maintaining all contributions and government incentives.
If no eligible successor is appointed, the plan will usually be collapsed, with government grants returned and investment income potentially taxed.
Tax Implications For The Estate And Beneficiaries
When an RESP forms part of an estate, it can trigger tax considerations:
- Contributions: returned to the estate tax-free (since they were made with after-tax income).
- Investment income and grants: taxable upon withdrawal if not used for education.
- CESG and CLB amounts: repaid to the government if the plan closes.
If the funds are withdrawn as an Accumulated Income Payment (AIP), they are taxed at the subscriber’s marginal rate plus an additional 20% (12% in Quebec). However, if the deceased had RRSP contribution room, the AIP may be transferred to the RRSP to defer taxation.
Proper estate planning can minimize these taxes and keep more of the RESP for the intended beneficiaries.
RESP Rules And Contribution Limits That Still Apply
Even after the subscriber’s death, normal RESP rules and contribution limits remain in effect under a successor subscriber.
| Feature | Rule (2025) | Notes |
| Lifetime Limit For RESP In Canada | $50,000 per beneficiary | Still applies to the new subscriber |
| Annual CESG Matching | 20% of the first $2,500 contributed | $500 per year, $7,200 lifetime max |
| Plan Lifespan | 31 years (35 for disabled beneficiaries) | The timeline does not reset after death |
| Education Savings Accounts Withdraw Rules | Still apply for eligible students | Proof of enrollment is required before EAPs |
These limits protect the integrity of the RESP and prevent abuse or overfunding.
Protecting The RESP Through A Will
The best way to protect an RESP is to address it directly in your will. A few best practices include:
- Name a specific successor subscriber by legal name and relationship.
- Specify that the RESP is to remain open for the child’s education.
- Authorize continued contributions within the permitted lifetime limit.
- Ensure your executor and beneficiaries know where the plan is held.
Some estate lawyers recommend drafting a separate Letter of Direction for the RESP, which outlines your intentions and guides your executor through the transfer process.
RESP For Child’s Education: Keeping The Purpose Intact
At its core, the RESP exists to fund education — not to become another estate asset that’s lost in probate. By planning ahead, families can ensure that even after a subscriber’s death, the account continues to benefit the children as intended.
Beneficiaries maintain their rights to the educational funds once they’re enrolled in post-secondary programs. The Education Savings Accounts withdraw rules still govern how funds are released:
- Post-Secondary Education (PSE) withdrawals: principal contributions, tax-free.
- Education Assistance Payments (EAPs): investment growth and government grants, taxable to the student (usually minimal tax).
So long as a successor subscriber is managing the account, the RESP continues functioning smoothly.
RESP Quotes Online: Comparing Providers For Estate Flexibility
If you’re opening a new RESP or transferring an existing one, it’s wise to research providers that offer strong estate-planning options. Some institutions allow multiple joint subscribers or automatic successor appointments.
You can request RESP quotes online to compare:
- Plan flexibility in naming successors
- Provider rules for estate transitions
- Fees for ownership transfer or termination
- Options for managing RESP in estate planning scenarios
Choosing the right RESP provider upfront prevents headaches later.
Practical Example: How It Works In Real Life
Let’s consider a simple scenario:
Michael opened a family RESP for his two children in 2014 and contributed $2,500 per year. In 2025, he passed away suddenly. Because he had named his spouse, Julia, as the successor subscriber, she automatically assumes control.
- Julia continues her contributions, staying within the lifetime limit for the RESP in Canada.
- CESG and CLB grants remain intact.
- When their eldest enrolls at a Canadian university, Julia initiates withdrawals under the Education Savings Accounts withdrawal rules, ensuring the funds are used exactly as planned.
If Michael had not named Julia, the RESP would have frozen until probate concluded — risking grant clawbacks and delayed tuition payments.
Key Takeaways
- An RESP does not disappear after the subscriber’s death, but the outcome depends on whether a successor subscriber is named.
- Without a successor, the RESP becomes part of the estate and may be liquidated, with government grants returned.
- Taxes apply to income withdrawn outside educational use.
- Successor subscribers can continue contributions and withdrawals as normal within RESP contribution limits.
- Incorporating the RESP into your estate planning ensures that the RESP for the child’s education goals remains secure.
Final Thoughts
Few investments have the enduring quality of education — but only if we invest in it. Estate planning for what becomes of an RESP following the subscriber’s death is not just mandatory, it’s about continuity.
Designating a successor subscriber, integrating your RESP with your estate plan, and ensuring documentation is current are some ways to protect your child’s educational future even after you’re gone.
That peace of mind is priceless for families who have already made significant contributions to an RESP.
One of the reasons is its container structure, which makes the RESP durable — and when well-designed, it allows your educational legacy to persist.
Learn More: How To Maximize Your Child’s Education Savings Fund With An RESP In Canada