RESP planning — Northumberland County
RESPs in Cobourg: what local families should actually do
Cobourg has a high proportion of grandparent-funded education savings. Done in the wrong order, that generosity creates over-contribution penalties.
Short answer
How much should a Cobourg family put into an RESP?
The $50,000 lifetime contribution limit and $7,200 grant maximum are per child, not per plan. When Cobourg grandparents open a plan without knowing what the parents have already contributed, the combined total can breach the limit — attracting a 1% per month penalty until the excess is removed. One conversation before the first deposit prevents it entirely.
Reviewed by Johnathan Pollock · Updated 2026-01-15
Coordinating two generations of contributions
The cleanest structure is a single plan with one subscriber, funded by whoever has the capacity. If grandparents want to give, gifting the cash to the parents to contribute keeps the accounting simple and the limits obvious.
When grandparents prefer their own plan — for control, or because family circumstances warrant it — agree on a fixed annual split in writing. For example, grandparents contribute $1,500 and parents $1,000, totalling the $2,500 that maximizes the grant.
The estate side most Northumberland plans miss
A grandparent-owned RESP without a named successor subscriber becomes an estate asset on death. It can be collapsed, grant repaid and growth taxed as an Accumulated Income Payment — the opposite of the intent.
Naming a successor subscriber, usually the parent, takes one paragraph in the will and a note in the plan documentation. We cover the details on our grandparents' RESP page.
Run your Cobourg numbers
Enter your child's age and monthly amount to see the projected balance at 18, total grant captured, and how it compares with costs at Fleming College, Trent University, Loyalist College.
Open the RESP calculatorFrequently asked questions
- What happens if grandparents and parents both over-contribute?
- Contributions above $50,000 per child attract a penalty of 1% per month on the excess until it is withdrawn. Because the limit follows the child rather than the plan, two separate plans are the most common cause — confirm totals before contributing.
- Do I have to live in Cobourg to work with a local RESP advisor?
- No. We meet families across Durham, Northumberland, Quinte and the Kawarthas in person at our Oshawa office or by video. The RESP rules are federal — what changes locally is the cost of the programs your child is likely to attend and whether they will live at home.
- How much should a family contribute each year?
- $2,500 per child per year captures the full $500 Canada Education Savings Grant. That is the target for most families. Contributing more in a single year does not increase the grant, it just uses up the $50,000 lifetime limit faster.
- Can you move an existing RESP from my bank?
- Yes. A direct plan-to-plan transfer preserves the CESG as long as the beneficiary stays the same or is an eligible sibling. We handle the forms; the grant is never withdrawn and re-deposited.
Sources
Written and reviewed by Johnathan Pollock
Managing Partner, Thompson & Pollock Wealth Inc. — Amazon best-selling author of The Entrepreneur's Toolkit.
Last reviewed 2026-01-15
Want a second set of eyes on your plan?
We will tell you plainly whether your current RESP is fine where it sits or whether the grant, the fee level or the withdrawal sequence is costing your family money.