Investing in the Next Generation: RESP Tips & Legacy Planning

September marks a season of fresh starts. As backpacks get packed and classrooms fill up again, many families also turn their attention to the future—not just for this school year, but for the many milestones yet to come. Whether that means saving for your child’s education or planning how your wealth will be passed on, now is the perfect time to focus on investing in the next generation.

Why Investing in the Next Generation Matters

Planning for your family’s future isn’t just about growing wealth—it’s about creating security, opportunity, and peace of mind. Two forces are making this more important than ever:

  1. Rising education costs: Tuition and related expenses continue to climb in Canada, and even modest contributions today can grow into meaningful support for your child’s education.
  2. A massive wealth transfer on the horizon: Canadian baby boomers are expected to pass on trillions in assets over the coming decades. Without planning, families can face unnecessary taxes, delays, and even conflict.

The good news? With the right strategies in place, you can help your children and grandchildren thrive—both in school and in life.

RESP Strategies to Maximize Education Savings

One of the most effective tools for education savings is the Registered Education Savings Plan (RESP). Here’s what you need to know:

  • Government matching makes a big difference: The Canada Education Savings Grant (CESG) matches 20% of annual contributions up to $2500—that’s an extra $500 each year, just for saving.
  • Start small—it adds up: Even $50 or $100 a month can grow meaningfully over 10-15 years, especially with the government grant.
  • Flexibility matters: If your child doesn’t attend university, the funds aren’t lost. They can be transferred to another beneficiary or to your RRSP (with some conditions).

The key is to start early and contribute regularly—even modest contributions benefit from government incentives and compounding growth.

Legacy Planning for High-Net-Worth Families

For families with significant assets, intergenerational wealth planning goes beyond education savings. It’s about ensuring your hard-earned wealth supports the people and causes you care about most.

Key considerations include:

  • Start conversations early: Discussing your wishes openly can help avoid conflict and misunderstanding later.
  • Use the right tools: Family trusts, charitable giving strategies, and strategic gifting can help minimize taxes and maximize impact.
  • Pass down values, not just wealth: The most successful wealth transfers are paired with clear communication around financial responsibility, philanthropy, and family goals.

A well-structured plan creates confidence that your wealth will be used wisely, while minimizing taxes and protecting family harmony.

How to Get Started

  • For parents and young families: Open or review your RESP, set up automated contributions, and revisit your plan each year to adjust as your child grows.
  • For high-net-worth families: Work with your advisor to review your estate plan annually. Consider involving your children in financial discussions early to prepare them for stewardship.

The Bottom Line

Investing in the next generation isn’t just about dollars and cents—it’s about creating a lasting legacy of opportunity. Whether you’re setting aside your first RESP contribution or updating a complex estate plan, September is the perfect time to take action.

At Evans Family Wealth, we help families like yours align today’s decisions with tomorrow’s dreams. Let’s start planning your legacy—together. Reach out today.

 

Briana

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