How to Add a Child to a Family RESP

A Family Registered Education Savings Plan (RESP) is a great option for parents or grandparents looking to simplify a child’s post-secondary education savings while making the most of government grants and tax-deferred investment growth. Parents or grandparents can start with a Family RESP for one child and add additional siblings later on, and instead of managing multiple accounts, they can do it all from one plan.

If you have a Family RESP and are wondering how to add more siblings to your family plan, here’s what you need to know.

What is a Family RESP?

Unlike an individual Registered Education Savings Plan (RESP), a Family RESP is a tax-deferred education savings account that lets you save for more than one child in one place while also benefiting from government grants. Each child in the family account can qualify for grants that match up to 20% of contributions, or more if your family is considered low-income.

These accounts are usually opened by parents or grandparents, but technically, a sibling over the age of majority (18 or 19 years old depending on the province you live in) can open one too—though that’s pretty rare. Beneficiaries within a Family RESP must be related by blood or adoption, which includes biological and adopted children or grandchildren.

Since multiple people—like parents and grandparents—might contribute to different RESPs for the same child, the government tracks all contributions and grants using the child’s Social Insurance Number (SIN). This ensures that no one accidentally exceeds the lifetime contribution limit or claims more grant money than allowed.

How a Family RESP Works

While both Individual and Family RESPs qualify for government grants like the Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB), a Family RESP offers more flexibility. One of its major benefits is the ability to share grants and investment growth among siblings. If one child chooses a shorter or more affordable program—or even decides not to pursue post-secondary education—you can reallocate the funds (within lifetime maximums) to another child who might need more support for a longer or more expensive education.

With a Family RESP, each child has a $50,000 lifetime maximum contribution limit, even if multiple RESPs are opened for them. So, if both a parent and a grandparent set up separate accounts, you’ll need to make sure that the total contributions across all accounts don’t exceed that limit, otherwise, you’ll face a 1% tax penalty every month until the money is withdrawn.

A Family RESP allows your savings to grow tax-free until your kids need them for school. Since you don’t pay taxes on investment earnings right away, both your contributions and government grants have more time to compound, helping you build a larger education fund. That’s why it’s important to start saving early. Then, when it’s time to withdraw, the investment earnings are taxed in your child’s name—and because students usually have low income, the tax owed is typically very small. Plus, with a Family RESP, you can continue to contribute to your other children while simultaneously withdrawing money for the one(s) in post-secondary education.

Who Can Open a Family RESP?

A Family RESP must be opened by someone related to the beneficiaries by blood or adoption. This includes biological and adopted children or grandchildren. As such, it’s generally a parent or grandparent, or occasionally, a sibling, who opens a Family RESP.

If you have just one child or grandchild right now, you can still open a Family RESP—it functions just like an Individual RESP until you decide to add more kids later. Because it gives you the flexibility to include additional beneficiaries in the future, it’s often a better long-term option than an Individual RESP.

In fact, you typically cannot convert an Individual RESP into a Family RESP, as they have different rules and structures, so if there is the possibility of wanting to add more children down the road, it’s best to consider opening a Family RESP from the start. Opening a Family RESP would require you to close your Individual RESP to open a new Family Plan and transfer any funds over.

Eligibility Requirements for Adding a Child to a Family RESP

If you want to add another child to your Family RESP, they must be related to you by blood or adoption and meet one of these conditions:

• They are under 21 years old when you add them to the plan, or
• They were already a beneficiary of another Family RESP before joining this one.

You’ll also need to have your child or grandchild’s Social Insurance Number (SIN) as well as valid proof of ID for yourself.

There’s no limit to how many kids you can add to a Family RESP, as long as they are closely related to the person who opened the account—meaning they must be a child, grandchild, or sibling. For example, parents might start a Family RESP for their two kids and later add a third without any issues. Or a grandparent might start a Family RESP for a grandchild and add additional grandchildren later on that are siblings to the first grandchild but they would not be able to add a beneficiary’s cousin to a Family RESP. It’s also a good idea to keep in mind that if there are large gaps between children, the plan can only be open for a total of 35 years.

If your Family RESP already has government grants in it, you can add a sibling of an existing beneficiary without any penalties. However, if you try to add a non-sibling, like a cousin or family friend, you’ll have to repay any government grants that were already deposited—whether they are from federal or provincial programs.

How to Add a Child to a Family RESP

Now that we’ve explained what a Family RESP is and the eligibility requirements for adding a child, let’s explore the steps to adding a child to a Family RESP. A Family RESP gives you the flexibility to save for multiple children in one account, and adding a new beneficiary is a straightforward process. Here’s what you need to do:

1. Contacting Your RESP Provider

The first step is reaching out to your RESP provider to let them know you want to add another child to your Family RESP. Every institution has its own procedures, so they’ll guide you through the steps and let you know what’s required. It’s a good idea to ask about any implications for grant money or investment allocations when adding another child. If you have an Embark RESP, you can open and add siblings to a family plan easily from your online account.

2. Providing Required Documents

To officially add the new child, you’ll need to provide some basic documentation. Your RESP provider will typically ask for the child’s Social Insurance Number (SIN). Once the paperwork is processed, the new child becomes an official beneficiary, and you can start allocating RESP savings toward their future education.

Key Considerations When Adding a Child to a Family RESP

As you are now aware, a Family RESP is a great way to save for multiple kids in one account, but before adding another child, it’s important to understand how it impacts government grants, contribution limits, and fund flexibility.

Impact on Government Grants (CESG)

When you add a new child to a Family RESP, they also become eligible for the Canada Education Savings Grant (CESG) and any provincial grants (like those in Quebec and British Columbia). However, the total amount of CESG available doesn’t increase just because more children are added.
Each child in the plan can still receive up to $7,200 in CESG over their lifetime, but grants are distributed based on individual contributions. So, to maximize grants for each child, you’ll need to plan contributions carefully—aiming for at least $2,500 per year per child to get the full 20% matching from the government.

Contribution Limits and Rules

Adding more children doesn’t increase the total amount you are allowed to contribute to the RESP. The lifetime contribution limit per child remains $50,000, regardless of how many kids are in the family plan.
This means if multiple family members (like parents and grandparents) are contributing to different RESP accounts for the same child, it’s important to track all contributions under the child’s Social Insurance Number (SIN) to avoid exceeding the limit. Over-contributions are subject to a 1% monthly penalty on the excess amount until it’s withdrawn.

Flexible Use of Funds Across Multiple Children

One of the best features of a Family RESP is that savings, investment earnings, and grants can be shared among the beneficiaries. If one child chooses a shorter or less expensive program, their contributions and earnings can be reallocated to another sibling who might need extra financial support within their allotted maximum amounts.
The two key rules to remember are: Beneficiaries are capped at a lifetime contribution limit of $50,000 each and CESG grant money is capped at $7,200 per child.

Final Thoughts

Adding a child to a Family RESP is a pretty easy and straightforward process. You just need to contact your RESP provider to let them know you want to add another child and provide the necessary documentation. Just remember that an individual RESP cannot be changed into a Family RESP later on, so make sure you start with a Family RESP if you think you may want or need to add additional children at a later date.

Starting to save early for your kids is always a smart move—especially when it comes to their education. The sooner you invest, the more time your money has to grow, and you can also take advantage of government grants to boost your savings. With a Family RESP, you get even more flexibility by allocating funds to whichever child needs them the most, making it a great way to plan for their future.