Transferring an RESP to Franklin Templeton

Here’s how to transfer your client’s RESP to Franklin Templeton. Whether the transfer is in cash or in kind, the process is the same.

• Form A - Complete this with your client and mail or fax it to us.
• If your clients are transferring their plan from another institution to a brand new RESP at Franklin Templeton, we’ll also need an RESP application form and the appropriate grant applications. (Refer to the chapter on Opening an RESP)

Eligible Transfers vs. Ineligible Transfers

Knowing the difference between eligible and ineligible transfers will help you steer your clients from a decision that might result in over-contributions or grant claw-backs.

A transfer is eligible if:

• The relinquishing and receiving plans have a common beneficiary

  OR

• A beneficiary in the receiving plan is a brother or sister of a beneficiary in the relinquishing plan and the receiving plan is:

  • A family RESP

    OR

  • An individual RESP that was entered into before the beneficiary the year in which the beneficiary turned 21.

If the above criteria aren’t met, it’s an ineligible transfer which carries the following consequences:

• Grant received on the relinquishing account may be returned to the government

  AND

• The receiving plan will assume the contribution history of the relinquishing plan, potentially triggering over-contributions and tax penalties

More information

• RESP Transfers – detailed information about RESP transfers.