TORONTO, April 13, 2012 /CNW/ - Dreaded tax time is now upon us, but instead of spending those tax returns on just anything, why not invest into a Heritage Education Funds Registered Education Savings Plan (RESP). For those families who may be receiving a refund this year, instead of depositing your refund into a bank account, or an RRSP, why not make a contribution towards your child's future post-secondary education and receive an instant 20% from the Canada Education Savings Grant*.
Heritage Education Funds has almost 50 years of experience behind them and is one of the leading Canadian distributors of fixed-income RESPs. With national representatives, Heritage can proudly say they have assisted over 400,000 children across Canada reach their post secondary goals. Heritage is able to personalize a plan that makes sense with your financial abilities, and has flexible solutions so your RESP works for your child, no matter what post secondary education degree they hope to pursue.
Many new parents often don't consider the importance of opening an RESP early for their child, but with the rising cost of tuition each year, the price tag for college or university may be out of reach by the time their child turns 18. Many Canadian families are forced to take on the financial burden with expensive loans and refinancing, or worse, the student is burdened with the responsibility to juggle work and class.
Taking advantage of upcoming tax returns can be incredibly helpful: a refund of $2,000 contributed to an RESP, with the added Canada Education Savings Grant of $500 provides you with a total savings of $2,500. You can only qualify for these grants through an RESP account. The government contributes 20 - 40 per cent (depending on Household Income) of all contributions made to an RESP to a maximum of $500 per year per child with a lifetime maximum of $7,200. Furthermore, in certain provinces there are additional savings incentives, such as the Quebec Education Savings Incentive* which could add another $3,600 over the life of the RESP, or in Alberta $800 with the Alberta Centennial Education Savings Grant*.
Contributions to an RESP are tax sheltered while your fund grows. The fund is only taxable by the child/student on the CESG and interest earned when they pursue higher education at a recognized post-secondary institution. Because students typically have high exemption status and low income, the taxes they pay will be little to none.
If the child decides not to pursue a post-secondary education, there are many options with Heritage. The RESP income can be transferred to their RRSP or Spousal RRSP provided contribution room is available (up to a maximum of $50,000), or it can be transferred to another younger child. Depending on the situation the parent may even name themselves as the beneficiary and use the funds for their own pursuit of higher education.
About Heritage Education Funds Inc. Heritage Education Funds Inc. is one of Canada's leading providers of pooled RESPs (Registered Education Savings Plans) and is the distributor of the Heritage and Impression Plans. Heritage's objective is to encourage parents, grandparents and other interested adults to save for a child's post-secondary education through a planned education savings program.
© 2012 Heritage Education Funds Inc. Heritage Education Funds is the trade name of Heritage Education Funds Inc. Heritage Education Funds RESPs are offered by Prospectus only.
* Certain conditions apply
For further information:
To learn more about Heritage, visit our website at www.HeritageRESP.com or contact:
Heritage Education Funds Inc.
Direct Phone: (416) 758-6494