What will happen to the RESP in the event of death?

Do you have an RESP? Who is it registered to (mom, dad, or both)? Some banks allow an RESP to be set up for both parents, while others only allow it for one (in most cases, this will be the child's mother, as grant applications ask for the signature of the primary caregiver, who is typically the mother).

What happens if the RESP is registered to one parent, and that parent passes away?

In the event of the parent's death, if the RESP was registered to only one parent and the will does not specify otherwise, the RESP will be annulled: grants will be returned to the government, and the parent's funds will go to their estate.

What can be done about this before death to resolve the issue? You can amend the will and designate a new owner for the RESP. This option works if there is someone to pass it on to. Alternatively, you can transfer the RESP to a bank or financial institution that allows for a joint RESP, where both parents are owners, ensuring that the RESP continues to exist in the event of one parent's death.

Note: RBC does not allow joint RESPs, but oddly enough, RBC Direct Investing (RBC’s brokerage) does allow them.