There is a danger of focusing too much on the grants available to Registered Education Savings Plans (RESPs) and not enough on the rules surrounding use of the plans. One thing that might get overlooked is the fact RESPs have to be terminated after 25 years.

This means there is a risk a plan could expire with unused funds if the beneficiary takes time off before (or during) their post-secondary education and/or goes on to graduate studies. To address this risk, a sponsor can open up a new RESP every five years or so for the beneficiary (there is no limit on the nu ber of plans per beneficiary).

Family RESPs are good to have because funds can easily be shifted from children who don?t go on to post-secondary schooling to those that do. However, family plans may run afoul of the 25-year limit too. If there is a large gap in ages between children, it may terminate before the youngest have finished their studies. To deal with this possibility, consider supplementing the family plan with individual plans for the younger offspring.

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