# RESP in Canada, but planning a move to the UK



## MLH

We are planning to apply for a spousal sponsorship visa in the coming months to move to the UK.

So, in the lead up to this I hope to get my financial affairs in order.

I have been paying into an education fund - Registered Education Savings Plan (RESP) for my children since birth (13 years & 5 years).

When I contacted my representative to inquire about how to deal with a move abroad, etc, I half expected he would tell me that I needed to close the account and lose out on some of the units that I had purchased-buying it out...

He didn't. He suggested we keep the funds flowing into the RESP from a bank account in Canada...

This sounds shady to me.

I don't want to find myself in a position where I have screwed myself out of hard earned/invested funds. 

I would like to think that he wouldn't advise me to do something illegal-but you never can tell with people these days.

Is there a legal way to continue my contributions?

Education funds are tax sheltered and the government offers an income tested grant on the amount saved per year, plus the interest earned on the investment with the company.

Thoughts? Experiences? Suggestions?


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## musafireen

**Bump**

I am bumping this thread because I have a similar question.

I am moving to Austria for a while for my husband's work but would like to maintain Canadian residency so we can continue get RESP government grants and child benefits (ex. UCCB). Based on what I am reading it looks like I would need to spend more than half the year in Canada to do that. Am I correct? Is there not another way to maintain residency?

Thanks!
Katie


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## Bevdeforges

I wish I knew more about Canadian taxes so I could help. Perhaps we can flag down something with some experience.

If the RESP is a deferred tax type of savings account (like the various deferred tax accounts in the US), it's very likely that you lose the ability to fund the account if you no longer have income taxable in Canada. I don't think Canada taxes its citizens living abroad, but I'm not at all sure about that. 

As far as getting benefits from the Canadian government if you aren't tax resident there, I wouldn't hold my breath. Lots of governments are cracking down on that, if only to save money.
Cheers,
Bev


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## musafireen

Thanks for your post Bev. I believe you are correct that in this situation I would not be able to maintain residency and therefore am not able to claim benefits. Ah well. 

To the original poster's question- from what I have found I believe that you are still able to contribute but are just not eligible for government grants when you are a non-resident. If you have an RESP that requires you continue your contributions (ie. your plan is not at a bank where you can stop paying into it at any time) this would keep you from defaulting and incurring the penalty. However, I would certainly confirm this though. Anyone out there know??

Take care!


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