Can I pay my child directly?

Paying your child directly is not permitted under the RESP program rules Educational Assistance Payments (EAPs) from a Registered Education Savings Plan must be paid directly to the beneficiary student , not to parents or contributors. These payments are specifically designed to help students cover their post-secondary education costs and must be processed through proper RESP channels. The payment process works as follows: The RESP provider issues payments directly to the student Funds can only be released when proof of enrollment is provided The student must be attending a qualifying educational program Payments are considered taxable income for the student This structure ensures proper tracking of educational funds and maintains the program's tax advantages, as students typically have lower income levels and therefore pay less tax on these distributions.

"RESP Rules: Why You Can't Pay Your Child Directly"

Paying your child directly is not permitted under the RESP program rules

Educational Assistance Payments (EAPs) from a Registered Education Savings Plan must be paid directly to the beneficiary student, not to parents or contributors. These payments are specifically designed to help students cover their post-secondary education costs and must be processed through proper RESP channels.

The payment process works as follows:

The RESP provider issues payments directly to the student
Funds can only be released when proof of enrollment is provided
The student must be attending a qualifying educational program
Payments are considered taxable income for the student

This structure ensures proper tracking of educational funds and maintains the program’s tax advantages, as students typically have lower income levels and therefore pay less tax on these distributions.