Some grandparents choose to skip over their financially established adult children, and provide funds to their grandchildren. Other times, grandparents want to help  their kid’s provide for the grand-kids’ educations.

If you do decide to do this, make sure that you understand the tax implications. For example, if a grandparent gives cash or other property during his lifetime to a grandchild, or other family member, the law considers the grandparent to have sold the asset at fair market value, and requires the grandparent to pay taxes on any increase in value since the property was bought.

Why not consider an RESP? Not only are you helping your grandchildren, but the federal government will help you top up your contributions.

Call me today to find out how I can help you, help your grandchildren have a great start in life, with an RESP contribution.

Margaret Janecki, www.TheFinancialDoctor.ca

Giving Money To Grandchildren – why RESPs make sense

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