A Registered Education Savings Plan (RESP) is one of the best ways to save for a child’s post-secondary education, thanks to government grants and tax-deferred growth. But what if you want to add another person—like a spouse, partner, or grandparent—to help manage the account?
The subscriber is the person who opens and controls the RESP, making contributions and monitoring its growth. The subscriber can also withdraw funds from the RESP for post-secondary use or an AIP in non-school-related circumstances. But can you add another subscriber after the fact? And if so, what’s the process? Let’s break it down.
What is a Subscriber in an RESP?
The subscriber is the person who opens and manages the RESP. They’re in charge of making contributions and deciding how the money is used when it’s time for school or in the event it is withdrawn for non-educational purposes.
Anyone can open an individual RESP for a child—it doesn’t have to be a parent or even a family member. Whether you’re a grandparent, aunt, uncle, or family friend, you can become a subscriber and start saving for a child’s education.
However, for a family RESP, the subscriber needs to be related by blood or adoption to all the beneficiaries in the RESP. That means only a parent, grandparent, or sibling can open and manage a family RESP.
Spouses can open an RESP together as joint subscribers, whether it’s an individual or family plan. However, public primary caregivers (like legal guardians or government agencies) can’t open a family plan—they can only set up an individual RESP for a child.
Can You Add a Subscriber to an RESP Account?
If you already have an RESP set up, you might be wondering if you can add another subscriber—like a spouse, partner, or family member—to help manage the account.
Both individual and family RESPs can be jointly owned by spouses or common-law partners. The original subscriber of an RESP can add a spouse or common-law partner to the account at any time. However, if for any reason a subscriber wants to be removed, the original subscriber must remain on the account.
When Can Someone Replace a RESP Subscriber?
If you weren’t the original subscriber, you can only take over an RESP under specific circumstances. The exceptions for replacing a subscriber are set by the Canadian government and are as follows:
Divorce or separation
If you’re a spouse, common-law partner, or ex-partner, you can become or replace a subscriber if the RESP is transferred to you as part of a court order or a written agreement dividing property after the relationship ends.
Public primary caregiver changes
If a new guardian, government agency, or trustee takes over responsibility for the child, they can become the new subscriber through a written agreement.
After the original subscriber’s death
If the subscriber passes away, their rights can be transferred to:
- Another individual who continues contributing to the RESP.
- The subscriber’s estate can continue managing the RESP and making contributions for the child’s education.
Public caregiver agreements
If you’ve legally acquired the rights of a public primary caregiver, you may be able to take over as the new subscriber under the plan.
Since RESP rules vary depending on the provider, it’s always best to check with your financial institution or RESP provider to understand what’s possible in your specific situation.
What Happens to the RESP When Joint Subscribers Divorce?
Even after a divorce, joint subscribers can stay joint subscribers if they choose. If the RESP is individually owned, the original subscriber keeps control of the account. However, a court order can transfer subscriber rights from one spouse to the other, making them the new sole subscriber.
If the original subscriber remarries, their new spouse can become a joint subscriber on the RESP. Former spouses or common-law partners can also co-manage the RESP—but only if they are legal parents of the beneficiary.
What Happens to the RESP if the Original Subscriber Passes Away?
In many cases, the RESP becomes part of the deceased subscriber’s estate. If the subscriber names a successor (such as a spouse or legal representative) in their will, that person may take over managing the RESP. The new subscriber would then continue making contributions and handling withdrawals when the beneficiary starts school.
When No Successor Is Named
If the subscriber of an RESP passes away without a will that specifies what should happen to the account, things can get complicated. Since the RESP belongs to the subscriber, the court will decide what happens to the funds—and there’s a chance the money may not end up going to the beneficiary as intended.
Without clear instructions in a will, the RESP could be wrapped up in estate proceedings, delaying access to the funds or even leading to the account being closed. Contributions are then returned to the estate, while government grants (like the CESG) must be returned to the government.
Therefore, if you have an RESP, it’s important that you consider naming a successor subscriber in your will to avoid complications. If you’re unsure what happens to your existing RESP should you pass away, contact your RESP provider to discuss your options.
Alternatives to Adding a Subscriber to an RESP
Since adding a new subscriber to an existing RESP is usually not allowed, unless the subscriber is a spouse or common law partner, you may need to consider alternative ways to involve another person in managing or contributing to the account. Here are some options:
Opening a New RESP Under a Different Subscriber
One option is to open a separate RESP under the new subscriber’s name. A child can be the beneficiary of multiple RESPs, so a spouse, grandparent, or family friend can start their own RESP for the same child. However, keep in mind that all RESPs for the child share the same $50,000 contribution limit, so it’s important to coordinate contributions to avoid overcontributing and triggering penalties.
Assigning Power of Attorney or Legal Guardianship
If the original subscriber wants someone else to help manage the RESP, they can assign power of attorney (POA) to another trusted individual. This allows that person to make decisions and manage the account without officially being listed as a subscriber. POA can be especially useful in cases where the subscriber is unable to manage the account due to illness or other circumstances.
If the original subscriber passes away, the RESP can be transferred to their estate or a legal guardian, who then assumes control over the plan. The new guardian or estate representative will need to follow RESP rules and ensure the funds are used for the beneficiary’s education.
Non-Subscriber Contributions
Even if someone isn’t a subscriber, they can still contribute money to the RESP. Family members or friends can deposit funds into the account, but only the official subscriber has control over how the money is invested and used.
Final Thoughts
In most cases, adding a spouse as a subscriber to an existing RESP is possible, except in specific situations like divorce, death, or account transfers. If you want someone else involved, alternatives like opening a separate RESP, assigning power of attorney, or making third-party contributions can help.
Since RESP rules can be complex, it’s always a good idea to consult an RESP provider like Embark to explore your options. Here at Embark, we can guide you through the process, help you maximize grants, and ensure your RESP is structured in the best way to support your child’s education savings.
