Does it matter for RESP purposes if the child beneficiary lives outside Canada when the subscriber parent dies?

It can matter, yes. RESPs and the federal grants attached to them are generally structured around Canadian residency requirements for the beneficiary, and a beneficiary living outside Canada can affect ongoing eligibility for grants, and potentially for withdrawals, depending on the specific program rules in place at the time. This is a separate question from what happens to the plan when the subscriber dies. The subscriber's death raises the "who manages the plan now" issue, while the child's residency raises a "does the plan still qualify for what it was designed for" issue.

Because residency rules for federal education savings programs can be detailed and depend on the specific facts, such as how long the child has been outside Canada and whether it's temporary, this isn't something to resolve from general information. The RESP provider and the relevant federal program guidance are the right places to confirm the actual impact on grants and withdrawals in your family's situation.

If a subscriber has died and the beneficiary is living abroad, contact the RESP provider promptly to understand what documentation or steps are needed to keep the plan on track.