Canada Education Savings Regulations

10 (1) Subject to subsection (3), the portion of an EAP made to a beneficiary under an RESP that is attributable to a CLB is

• (a) if there is accumulated income in the RESP, the amount determined by the formula

  A × B/(C - D - E)

  where

  A

  is the amount of the EAP,

  B

  is the balance in the beneficiary’s CLB account of the RESP immediately before the EAP is made,

  C

  is the fair market value of the property held in connection with the RESP, determined immediately before the EAP is made or at an earlier time that is agreed to in the trustee agreement that applies to the RESP,

  D

  is the total of all contributions made to the RESP before the EAP is made that have not been withdrawn, and

  E

  is the total in all CLB accounts of the other beneficiaries under the RESP immediately before the EAP is made; and

• (b) if there is no accumulated income in the RESP, the amount determined by the formula

  A × B/(B + F + G)

  where

  A

  is the amount of the EAP,

  B

  is the balance in the beneficiary’s CLB account of the RESP immediately before the EAP is made,

  F

  is the balance in the grant account of the RESP immediately before the EAP is made, and

  G

  is the total of all amounts paid into the RESP under a designated provincial program.

(2) Subject to subsections (3) and (4), the portion of an EAP made to a beneficiary under an RESP that is attributable to CES grants is

• (a) if there is accumulated income in the RESP, the lesser of

  • (i) the amount determined by the formula

    A × F/(C - D - E)

    where

    A

    is the amount of the EAP,

    F

    is the balance in the grant account of the RESP immediately before the EAP is made,

    C

    is the fair market value of the property held in connection with the RESP, determined immediately before the EAP is made or at an earlier time that is agreed to in the trustee agreement that applies to the RESP,

    D

    is the total of all contributions made to the RESP before the EAP is made that have not been withdrawn, and

    E

    is the total in all CLB accounts of the other beneficiaries under the RESP immediately before the EAP is made, and

  • (ii) the amount, if any, by which $7,200 exceeds the aggregate of all amounts determined under subparagraphs (i) and (b)(i) in respect of an EAP previously made under the RESP to the beneficiary; and

• (b) if there is no accumulated income in an RESP, the lesser of

  • (i) the amount determined by the formula

    A × F/(B + F + G)

    where

    A

    is the amount of the EAP,

    B

    is the balance in the beneficiary’s CLB account of the RESP immediately before the EAP is made,

    F

    is the balance in the grant account of the RESP immediately before the EAP is made, and

    G

    is the total of all amounts paid into the RESP under a designated provincial program, and

  • (ii) the amount, if any, by which $7,200 exceeds the aggregate of all amounts determined under subparagraph (a)(i) and subparagraph (i) in respect of an EAP previously made under the RESP to the beneficiary.

(3) The portion of an EAP that is attributable to CES grants or a CLB is nil where the beneficiary is not resident in Canada at the time the EAP is made.

(4) The portion of an EAP made to a beneficiary under an RESP that allows more than one beneficiary at any one time that is attributable to CES grants is nil where the beneficiary became a beneficiary under the RESP after attaining 21 years of age, unless, before attaining 21 years of age, the beneficiary had been a beneficiary under another RESP that allows more than one beneficiary at any one time.

(5) Where a CES grant or a CLB is paid as a portion of an EAP to a beneficiary under an RESP, the trustee shall debit the grant account or the CLB account of the RESP, as the case may be, at the time of the payment with the amount of CES grant or CLB paid.