Investments
Education Plan

With a family plan, you (the subscriber) can name more than one child as a beneficiary of the plan. Each beneficiary must be your child, grandchild, great-grandchild or sibling, by birth or adoption. If the child for whom the plan was originally intended decides not to go on to postsecondary education, the funds can be allocated to another child in the plan.

These plans allow for only one child to be named as beneficiary. He or she does not have to be related to you.

If you have a family plan, you can use the earnings to pay for the education of another child the plan. With an individual plan, you may have the option of naming another beneficiary, but the total CESG may have to be returned to the federal government.

If no beneficiary pursues higher education, you may be able to transfer up to $50,000 tax-deferred from the RESP to your or your spouse’s or common-law partner’s RRSP subject to these special conditions:

• The RESP must have been in effect for at least 10 years
• All RESP beneficiaries must be at least 21, and not currently enrolled in post-secondary education
• You must be a Canadian resident
• In addition, normal RRSP contribution limits apply. If you do not have sufficient RRSP contribution room, you may be able to withdraw plan earnings, however, some restrictions and additional taxes may apply.

• In order for an RESP to receive the federal government's CESG, the child named in the RESP needs a Social Insurance Number.

For an RESP mutual fund account comprised of individual funds, government assistance is paid into the plan monthly and invested in Class A units of CIBC Money Market Fund. For an RESP mutual fund account comprised of a portfolio, government assistance is paid into the plan monthly and is allocated proportionately to the various mutual funds in the portfolio.