WHAT'S NEW? THE BC TRAINING & EDUCATION GRANT FOR YOUR CHILD'S RESP.

The province of British Columbia has recently introduced a new $1,200 benefit to encourage families to start planning and save early for their children’s post-secondary education.  The B.C. Government will contribute $1,200 to eligible children through the new B.C. Training and Education Savings Grant (BCTESG).

To be eligible for this grant, the following criteria must be met:

- The child was born in 2007 or later
- You and the child must both be residents of British Columbia
- The child is the beneficiary of a Registered Education Savings Plan (RESP) with a * participating financial institution.

The earliest you may apply for the grant is when your child turns age six.  After that, you may apply any day before their ninth birthday. Since this is a new program in 2015, if your child had their 6th birthday in 2013, 2014 or 2015, you have an extension until August 14, 2018 OR the day before your child turns nine, whichever is later, in order to qualify for the grant.

If the child already has an RESP, * it is important the issuer has been approved to offer the grant.  If not, you may open another RESP at a participating provider in order to receive the $1,200 OR enquire as to whether the existing RESP issuer has applied.

To be eligible to receive the B.C. Training and Education Savings Grant, the RESP must be an individual (non-family) plan OR a family plan in which all beneficiaries are siblings.

The $1,200 grant will be deposited directly into your child's RESP once the application has been processed and approved by Employment and Social Development Canada. The money should arrive within six to eight weeks after application.

Registered Educational Savings Plans are an excellent means to save for a child's post secondary education. The government offers significant financial incentives to establish a plan for your child or grandchild. The new BC Training and Education Grant is a further benefit now available to residents of B.C.who may qualify. 

The opinions and comments expressed are solely those of R.W.(Bob) Davies, CFP and not those of Manulfe Securities Incorporated. E & O excepted. For more information contact Bob at robert.davies@manulifewealth.ca