Canada Education Savings Regulations

16 (1) For the purpose of these Regulations, the transfer of an amount, other than an amount in a CLB account, from an RESP to another RESP is an eligible transfer

• (a) if

  • (i) any beneficiary under the receiving RESP is, immediately before the transfer, a beneficiary under the transferring RESP, or

  • (ii) a beneficiary under the receiving RESP had not attained 21 years of age at the time of the transfer and a parent of the beneficiary was a parent of an individual who was, immediately before the transfer, a beneficiary under the transferring RESP;

• (b) if, at the time of the transfer,

  • (i) the receiving RESP has only one beneficiary or, if there is more than one, every beneficiary is a brother or sister of every other beneficiary, or

  • (ii) no payments have been made into the transferring RESP under subsection 5(4) of the Act; and

• (c) if the receiving RESP complies with the conditions for registration set out in subsection 146.1(2) of the Income Tax Act that apply in respect of education savings plans entered into on January 1, 1999.

(2) If less than all of the property, other than the property in a CLB account, held in connection with an RESP is transferred to another RESP, the assisted contributions, unassisted contributions, CES grants, any amount paid under a program administered pursuant to an agreement entered into under section 12 of the Act and accumulated income are considered to be transferred in the same proportion as the value of the property transferred is to the total value of the property, other than the value of the property in a CLB account, in the RESP at the time of the transfer.

(3) If property held in connection with an RESP, other than the property in a CLB account, is transferred to another RESP, the amount of CES grant that is transferred or considered to be transferred under subsection (2) is, at the time of the transfer,

• (a) debited from the grant account of the transferring RESP; and

• (b) credited to the grant account of the receiving RESP.

(4) The amount of the CES grant that is transferred or is considered to be transferred under subsection (2) is considered to have been paid to the trustee under the receiving RESP.

(5) The assisted contributions or unassisted contributions that are transferred or are considered to be transferred under subsection (2) are considered to have been made to the receiving RESP.