Which statement about Bill's rights as the subscriber of the RESP is false?

The statement regarding Bill's rights as the subscriber of the Registered Education Savings Plan (RESP) that is misleading is the assertion that he can withdraw his capital from the RESP at any time, provided he pays tax on it at his marginal rate. In reality, while the subscriber can indeed withdraw capital, the taxation imposed is more complex and does not allow for unrestricted withdrawals without potential penalties or tax implications, especially on grant amounts and income earned within the plan.

The other statements reflect accurate features of RESPs. For instance, Bill can transfer ownership of the RESP to Emily, the beneficiary, as part of the flexibility inherent to these savings plans, thereby ensuring the funds can be utilized for educational purposes as intended. It’s also true that Bill must keep track of contribution limits to avoid penalties, as exceeding the lifetime limit could lead to taxes on excess contributions. Lastly, Bill has the ability to make contributions on behalf of multiple beneficiaries, which provides the opportunity to save for the education of more than one child, enhancing the utility of the RESP for family planning.

This illustrates the importance of understanding the conditions and tax implications associated with withdrawing from an RESP, as well as the other rights and responsibilities a subscriber holds.