Heritage FAQs

Statement of Account


What does the Closing Balance on the statement of account include?
Why is my Closing Balance different than the amount I contributed into the plan?
I have started the plan prior to 2019 and my Opening Balance is zero. Why?  
What is an unregistered education savings account?  
How is income calculated?  
If I haven't contributed to an RESP for some time, can I still catch up on missed grant money?   
Does my plan continue to accrue income when I delay the maturity date?
Can my income under an Accumulated Income Payment (AIP) be transferred into my beneficiary's RRSP?
Does my beneficiary get taxed on EAPs?
Do I get taxed on funds released from the Plans?
Can my beneficiary study abroad and still receive funds from the Plans? If so, are there any tax implications for this?​
 

Using your RESP

What are my maturity options?
Under what circumstances should I choose a scholarship option?
What money do I receive under the scholarship option?
Does my beneficiary receive any payments under the scholarship option?
What is the self-determined option?
What money do I receive under the self-determined option?
What is included in the payments to my beneficiary under the self-determined option?
What kind of programs qualify under the self-determined option?
Is there a monetary limit to an EAP?
We have not heard from the school and do not know which option to pick yet. What should we do?
What do I do if my beneficiary does not attend post-secondary studies?
If I am late in sending my documents, can I still apply for my EAP at a later date?
What do I do if my beneficiary is only attending post-secondary studies part-time?
What do I do if my beneficiary is only going to begin post-secondary education in January?  
My beneficiary is fast tracking through the program. Which Heritage Plans option is most suitable for us?
What happens if my beneficiary is taking an apprenticeship or co-op program? What Heritage Plans option is most suitable for us?
What is the Office of the Registrar?
Who needs to complete the Proof of Registration Form?
What happens if my beneficiary hasn't successfully completed the previous academic level?
What if my beneficiary has failed a course/year? Does he/she get penalized?
Can the maturity date for my Heritage Plans be delayed? If so, how? 
Can I substitute the beneficiary on my Heritage Plans if he/she decides not to pursue post-secondary studies?
 

Insurance

What is Heritage Education Optional Insurance Protection?
How does the Heritage Education Optional Insurance work?
What happens if my spouse or I become deceased and there is no Insurance on my plan?
Who qualifies for Insurance coverage?
How are Insurance Premiums calculated and applied?
I do not have insurance on my plan, but I would like to add it. What do I need to do?
If I cancel my Heritage Plans, do I get insurance premiums back?


How secure is my investment?
Our plans fall into a special category of education savings plans. Government regulations limit the type of investments that can be held in the plans to those that are lower risk investments. Your contributions and government grants are invested in lower risk investments that earn a competitive, risk-adjusted return. Income earned in your Plan has more earning potential through investments in a mix of Canadian equities, US and Canadian Exchange Traded Funds (ETFs) and corporate bonds.
 

We understand that, unlike saving for retirement or paying off a mortgage, you usually have less than 18 years to save for a child's post-secondary education. Also, the money will be used up in a relatively short time (a maximum of 4 years in most cases). So, it's much more important that your money be available when you need it.

What does the Closing Balance on the statement of account include?
The closing balance on the statement of account includes the addition of income allocation, your contributions and government grants; and the deductions of sales charges, account maintenance fees and insurance premiums (if applicable).

Why is my Closing Balance different than the amount I contributed into the plan?
There is a difference between your closing balance and your total contributions because the closing balance includes the addition of income allocation, your contributions and government grants. It also includes the deduction of sales charges, account maintenance fees and insurance premiums (if applicable).

If you opened your Registered Education Savings Plan recently, the closing balance amount on your statement may indicate zero. You will see on your Statement of Account that the sales charges are currently being deducted from your early contributions. When you join the plan, there is a one-time upfront sales charge of $100 per Unit. With single contribution plans, the fee is deducted from the one-time contribution. With monthly and annual contribution plans, the fees are deducted through your early contributions. Once 50% of your sales charges is paid, half of the remaining contributions will be applied to cover the rest of the sales charges and half will accumulate as net savings, working to maximize your savings and income potential. In addition, your RESP attracts available government grants and earns income on those grants, provided we have the beneficiary's SIN on file and a completed grant application form.

Collection of sales charges is different from other available RESP products offered by banks, where the Management Expense Ratio (MER) is charged annually for as long as you hold the fund. This MER is not refundable under any circumstances, while the Heritage Plans offer a unique opportunity that i) may provide a refund of all or a portion of the sales charges with the principal for plans opened before July 2, 2004, or with educational assistance payments (EAPs) for plans opened after July 2, 2004 for plans with a maturity date of July 31, 2014 or earlier, or ii) will provide a refund of up to 25%, up to 50% or up to 100% of the sales charges to the subscribers at maturity depending on the payout option selected for plans with a maturity date of July 31, 2015 or later.

I have started the plan prior to 2019 and my Opening Balance is zero. Why?  
If you did not provide your beneficiary's Social Insurance Number (SIN) at the time of enrollment, your contributions were placed in an unregistered education savings account awaiting the beneficiary's SIN. If you provided your beneficiary's SIN in 2017, we transferred the balance of your unregistered education savings account into the new registered account that same year and treated the transfer as a new transaction with the opening balance of zero as per requirements of Employment and Social Development Canada (ESDC).

What is an unregistered education savings account?  
For an Education Savings Plan to be registered under the Income Tax Act (Canada), a beneficiary must have a valid SIN. If the beneficiary's SIN is not provided at the time of enrollment, contributions will be deposited in an interest bearing, segregated account held in trust on behalf of the subscriber. While in the unregistered education savings account, contributions are not eligible for the tax benefits of an RESP or government grants. If the SIN is not provided within 24 months, your contributions (less fees) and insurance premiums (if applicable) will be refunded, together with any income earned.
 

The beneficiary's SIN must be provided within 24 months of the date of acceptance of the subscriber's application. As long as the SIN is provided within 24 months, and the completed grant form(s) are received, the Foundation will apply on the subscriber's behalf for registration of the plan and applicable government grants.

How is income calculated?  
Income allocation in your plan is based on the net balance in your account including any income already earned (after all deductions are made). Income on government grants is calculated on the full amount of grants less the $25 Canada Learning Bond (CLB) Administration Fee (if applicable).

If I haven't contributed to an RESP for some time, can I still catch up on missed grant money?   

  • A child/beneficiary born before January 1, 1998, has been accumulating Canada Education Savings Grant (CESG) room from 1998 onwards and is entitled to $400 for each year up to and including 2006. From 2007 onwards, that child has been accumulating $500 of CESG room each year. Please note the maximum you can collect in CESG in any year is $1,000.
  • A child born on or after January 1, 1998, has been accumulating CESG room since the year they were born based on the amounts stated above.
  • If you have already opened your RESP and have yet to apply for the CESG for contributions previously made, please note the following: For any contributions made before December 31, 2004, the deadline to apply for the Basic CESG is no later than December 31, 2007. For any contributions made from January 1, 2005, onward, you must apply for the Basic and/or Additional CESG within three years of the date you made the contributions.
  • If you can't make your RESP contributions for one or more years, you're still entitled to receive CESG payments for those years. For instance, if you stop making RESP contributions for two years and then start contributing again, you may be eligible for an amount of CESG that would have been allocated for the years in which the payments were not made. This applies to Basic CESG only; Additional CESG is not carried forward.
  • Please note: for any contributions made before December 31, 2004, the deadline to apply for the Basic CESG was December 31, 2007. Any contributions made from January 1, 2005 and onward, you must apply for the Basic and/or Additional CESG within three (3) years from the date you made the contributions.
  • CESG payments and income will be paid to the student as part of the educational assistance payment(s) (EAPs) beginning in their second year of post-secondary studies.
Does my plan continue to accrue income when I delay the maturity date?
Yes. Income will continue to accrue until your new/revised maturity date.

Can my income under an Accumulated Income Payment (AIP) be transferred into my beneficiary's RRSP? ?
An AIP may only be transferred into the RRSP of an original subscriber or common-law partner of a deceased original subscriber (if there is no other subscriber) tax-free. If you wish to transfer the funds into your beneficiary's RRSP, you must withdraw the AIP as a cash payment, which can then be applied into an applicable RRSP (provided there is contribution room available). Please note: An AIP cash withdrawal is subject to two different taxes: the regular income tax and an additional federal tax of 20% (12% federal and 8% provincial for Quebec residents).

Does my beneficiary get taxed on EAPs?
Yes, the child (beneficiary) will be responsible to pay regular tax on the EAPs received. Since the income tax bracket is typically very low for students, your beneficiary may not be taxed as much for the amounts received. A T4A slip will be sent in February of the year following the EAP payment enabling the beneficiary to file for the taxes applicable.

Do I get taxed on funds released from the Plans?
Net contributions returned to you, the subscriber, are not included in your taxable income. The EAP payments to the beneficiary are taxable to the beneficiary. Under the self-determined option, if the beneficiary does not pursue post-secondary studies and the subscriber(s) withdraws the income accrued in cash, they will be required to pay the regular tax on the amount received plus an additional federal tax of 20% (12% federal and 8% provincial for Quebec residents).

Can my beneficiary study abroad and still receive funds from the Plans? If so, are there any tax implications for this?​
Yes, your beneficiary may receive EAPs even if he/she studies abroad. There will be an additional tax of up to 25% applicable on each EAP withdrawal if your beneficiary is not a Canadian resident at the time the EAP is paid. To determine if there are any other tax implications, you may want to contact your local accountant or the Canada Revenue Agency (CRA) at 1.800.267.5177.

Using your RESP

 

OPTIONS AVAILABLE WITH YOUR HERITAGE PLANS:

What are my maturity options?

There are two maturity options under the Heritage Plans:

The scholarship option (continuing in the group plan)
The self-Determined option (transferring to the self-determined plan)
Under the scholarship option there are three alternatives to select from, with educational assistance payments (EAPs) made in one, two or three years. Your selection will usually depend on the length of post-secondary studies your beneficiary intends to pursue. Alternatively, you may transfer to the self-determined option.

Under what circumstances should I choose a scholarship option?
If your beneficiary enrolls in a 2-, 3- or 4-year post-secondary program, the scholarship option is the most beneficial. A combination of programs totaling 2, 3, or 4 years qualifies as well.

What money do I receive under the scholarship option?
Under the scholarship option, your RESP contributions (less applicable fees) are returned to you tax-free at maturity. For plans with a maturity date of July 31, 2014 or earlier, and were enrolled prior to July 2, 2004, the sales charges of 25%, 50% or 100% (depending on the payout option selected), are paid along with your maturity payment. However, if the plan was enrolled on or after July 2, 2004, and based on the payout option selected; the sales charges of 25%, 50% or 100% are returned along with the EAPs. For plans with a maturity date of July 31, 2015 or later, your RESP contributions (less applicable fees) are returned to you tax-free at maturity, along with up to 25%, up to 50% or up to 100% of the sales charges depending on the payout option selected. These funds can be used to finance your beneficiary's first year of post-secondary education.

Does my beneficiary receive any payments under the scholarship option?
Yes. Depending on the length of eligible studies your beneficiary attends, you can decide how the educational assistance payments (EAPs) should be paid to your beneficiary. There are three payout options available:

For plans with a maturity date of July 31, 2014 or earlier:

1. For students attending a 2-year post-secondary program, Option #1 provides 1 EAP that consists of government grants, income1, attrition2 and a payment from the discretionary payment account3.

2. For students attending a 3-year post-secondary program, Option #2 provides 2 annual EAPs, where each payment consists of 50% of government grants, income1, attrition2 and a payment from the discretionary payment account3.

3. For students attending a 4-year post-secondary program, Option #3 provides 3 annual EAPs, where each payment consists of: 33.3% of government grants, income1, attrition2 and a payment from the discretionary payment account3.

For plans with a maturity date of July 31, 2015 or later:

1. For students attending 2 years of eligible studies, Option #1 provides 1 EAP that consists of government grants, income1 and a non-discretionary payment to enhance the EAP4.

2. For students attending 3 years of eligible studies, Option #2 provides 2 annual EAPs, where each payment consists of 50% of government grants, income1 and a non-discretionary payment to enhance the EAP4 with funds paid over two years and distributed with each EAP.

3. For students attending 4 years of eligible studies, Option #3 provides 3 annual EAPs, where each payment consists of: 33.3% of government grants, income1 and a non-discretionary payment to enhance the EAP4 with funds paid over three years and distributed with each EAP.

1. In each year the available Income, including that from terminated plans, is divided by the number of Units of eligible beneficiaries who have selected the same number of EAPs. The result is multiplied by the number of Units held with respect to the particular eligible beneficiary and distributed as part of the EAP. Income on government grants from terminated plans is not included in this amount.

2.Attrition is the term that applies to the share of pooled income that remains in the Heritage Plans after any beneficiaries in the same group as your beneficiary do not qualify for payments. For those beneficiaries, the income earned on contributions less fees stays in the total asset pool to be shared by beneficiaries remaining in the pool. Please refer to the Heritage Plans' prospectus for more information on how attrition applies to your plan. Actual results may vary.

3. Discretionary payments (consisting of sales charge returns and payments from the discretionary payment account) are not guaranteed. You should not count on receiving a discretionary payment. The Foundation decides if it will make a discretionary payment in any year and how much the payment will be.

4. This is a non-discretionary payment to beneficiaries in a beneficiary group, which represents the amounts of pre- and post-maturity attrition remaining after the refund of up to 25%, up to 50% or up to 100% has been paid. See prospectus for full details.


What is the self-determined option?
The self-determined option is designed specifically for beneficiaries enrolled in studies that are shorter than two years in length or not attending at all.

What money do I receive under the self-determined option?
With the self-determined option of the Heritage RESP, you, the subscriber, may withdraw your contributions less fees any time after the maturity date but before the expiry date of the plan, which is the end of the 35th year following the year the plan was entered into (or in the case of a specified plan, the end of the 40th year following the year the plan was entered into).. Then, as long as your beneficiary attends a post-secondary program offered by a recognized institution, he or she is eligible to receive educational assistance payments (EAPs). If the beneficiary does not plan to pursue a post-secondary education, the subscriber may request to release an accumulated income payment (AIP)*.

* Certain conditions apply. See prospectus for full details

What is included in the payments to my beneficiary under the self-determined option?
Your beneficiary will receive educational assistance payments (EAPs), which are made up of all income accrued on your Heritage Plan contributions less fees, all government grants, where applicable, and the income earned on those grants. EAPs can be applied to any qualifying post-secondary education program costs, including tuition, books, residence, and other legitimate education expenses.

What kind of programs qualify under the self-determined option?
Your RESP funds can be used for either full-time or part-time studies in a qualifying program. A qualifying full-time program in Canada is a course of study of at least three consecutive weeks, with at least 10 hours of study per week. A qualifying full-time program outside of Canada, is a course of study at a university of at least three consecutive weeks, with at least ten hours of study each week; or, a course of study at a Recognized Institution, other than a university, of at least 13 consecutive weeks, with at least ten hours of study each week. A qualifying part-time program in Canada is a minimum of 3 consecutive weeks studying for at least 12 hours per month while outside of Canada is a minimum of 13 consecutive weeks for at least 12 hours per month.

Is there a monetary limit to an EAP?
If the beneficiary is registered for at least 3 consecutive weeks and no less than 12 hours per month, the maximum amount that may be released for each 13-week period of study is $2,500. The beneficiary must continue studies to qualify for additional payments.

If the beneficiary is registered for full-time studies, the maximum amount of an EAP that can be made to a student as soon as he/she qualifies to receive them is $5,000. After the student has completed 13 consecutive weeks and is still considered a full-time student, there is no limit on the amount of EAPs that can be paid if the student continues to qualify to receive them. If there is a 12-month period in which the student was not enrolled in a qualifying educational program for 13 consecutive weeks, the $5,000 maximum applies again.

Under the self-determined option, any subsequent EAP withdrawal within the same year will be subject to a processing fee of $10.00 (plus applicable taxes).

Important: Pursuant to the Canada Revenue Agency (CRA) regulations, there is an annual EAP threshold limit of $24,676. If the total EAP is more than this amount, you or your beneficiary will be required to provide Heritage with proof of the beneficiary's educational expenses that meet or exceed the annual threshold limit in order to receive any remaining balance.

THE SCHOOL:

We have not heard from the school and do not know which option to pick yet. What should we do?
You must select an option if you require funds from your Heritage Plans to pay for post-secondary studies. You have until July 31st of the maturity year to select an option. The deadline cannot be extended. If the beneficiary does not plan to enroll in a post-secondary education program in the year the plan is scheduled to mature, please request to delay the maturity date before July 1st in the year the plan is scheduled to mature. Delays of the original maturity date are permissible up to July 31st prior to the beneficiary's 21st birthday.

What do I do if my beneficiary does not attend post-secondary studies?
If your beneficiary decides not to pursue a post-secondary education, you may transfer to the Heritage Plans self-determined option and may withdraw your contributions less fees and:

  • Roll the income into your or your spouse's RRSP (if your spouse is a joint Subscriber) provided that you have contribution room available and that the conditions for an accumulated income payment (AIP) have been met.
  • If you do not have RRSP contribution room available and you make a withdrawal on your contributions less fees and income earned, Canada Revenue Agency (CRA) will levy an additional federal tax of 20% (12% federal and 8% provincial for Quebec residents) on the withdrawn funds (other than contributions less fees), on top of your regular tax rate. You may also substitute the beneficiary on your plan with another beneficiary and keep the contributions less fees in the plan until the new beneficiary decides to pursue post-secondary education or until the plan reaches its 35-year lifetime limit; whichever occurs first if no Educational Assistance Payment (EAP) or Accumulated income payment has been released.
  • Under certain circumstances, you may also roll the income into a Registered Disability Savings Plan (RDSP). See prospectus for full details.
You may also substitute the beneficiary on your Heritage Plans with another beneficiary and keep the contributions less fees in the plan until the new beneficiary decides to pursue post-secondary education or until the plan reaches its 35-year lifetime limit; whichever occurs first.

If I am late in sending my documents, can I still apply for my EAP at a later date?
Yes, a beneficiary can still apply for the EAP at a later date up until January 31st of the following year provided the required documents are forwarded to the Foundation. The Proof of Registration can be submitted at a later date at any time prior to January 31st of the following year.

What do I do if my beneficiary is only attending post-secondary studies part-time?
For Heritage Plans with a maturity date of July 31, 2014 or earlier, part-time registration will not enable the beneficiary to receive educational assistance payments (EAPs) under the scholarship option. For plans with maturity date of July 31, 2015 or later, part-time registration will enable the beneficiary to receive EAPs under the scholarship option. Under the self-determined option, beneficiaries will be eligible for EAPs under part-time studies regardless of maturity date of the plan.

A beneficiary (student) can access up to $2,500 of the income and grants for each 13-week period of study. In Canada, the beneficiary will be required to register in a post-secondary course that lasts at least 3 consecutive weeks and is no less than 12 hours of study per month. Outside of Canada, the beneficiary will be required to register in a post-secondary program that lasts at least 13 consecutive weeks and is no less than 12 hours per month. Official confirmation from the Office of the Registrar will be required to facilitate this payment.

What do I do if my beneficiary is only going to begin post-secondary education in January?  
When the EAP notice for your Heritage Plans is sent in spring of any given year, he/she may request to put the EAP on hold until January 31st of the following year. This extension may be requested in writing from the beneficiary by completing the EAP Application in your secure Subscriber Online account, by calling the Customer Service Team toll-free at 1.800.363.7377, or by contacting us via email at CustomerCare@HeritageRESP.com prior to August 15th.

My beneficiary is fast tracking through the program. Which Heritage Plans option is most suitable for us?
Each condensed program has different criteria for completion, which is regulated by the post-secondary institution where such a program is offered. For example, if a beneficiary (student) is going to take 3 years to complete a 4-year program, there may be an opportunity for the beneficiary to receive all 3 EAPs under the scholarship option. For further details, please call our Customer Service Team by phone toll-free at 1.800.363.7377 or contact us online

What happens if my beneficiary is taking an apprenticeship or co-op program? What Heritage Plans option is most suitable for us?
Canada Revenue Agency regulations confirm that apprenticeship programs qualify, provided the student is registered in the minimum requirements as stipulated in the Income Tax Act (Canada). You can select from one of the three scholarship options, or you can select the self-determined option. Choose the option best-suited to the length of your beneficiary's term of study.

What is the Office of the Registrar?
The Office of the Registrar is located on the campuses of post-secondary institutions. Through this office, students can register for their courses. The Registrar is also responsible for the record-keeping of all their files and course information.

Who needs to complete the Proof of Registration Form?
The beneficiary (student) is required to complete the Personal Information section of the Proof of Registration form, sign, and date the form. The rest of the form must be completed, signed, and stamped/sealed by the Office of the Registrar at the post-secondary institution.

Please note that the proof of registration or verification of enrollment can be mailed, emailed, or faxed.

I'm not able to provide you with Proof of Registration by August 15th. Can I have an extension to apply for an EAP from my Heritage Plans? If so, how long do I have to submit my documents and apply for the EAP?

If the beneficiary (student) realizes that he/she will not be able to submit the Proof of Registration, Verification of Enrollment, or the EAP Application form before the August 15th deadline, he/she must request an extension. This extension is automatically granted up until January 31st of the following year and may be requested in writing from the beneficiary by completing the EAP Application, by calling the Customer Service Team toll-free at 1.800.363.7377, or by contacting us online. Please note the sooner the Foundation receives the EAP Application and the Proof of Registration form or Verification of enrollment, the earlier the EAP will be released (but not before the 2nd week of September).

What happens if my beneficiary hasn't successfully completed the previous academic level?
For Heritage Plans with a maturity date of July 31, 2014 or earlier, if the beneficiary is eligible to apply for an EAP however he/she has not completed the previous academic level successfully, he/she may request to defer the first EAP for a maximum of two years after the maturity date, one year at a time, to the beginning of the next EAP season. Further deferrals may be granted by the Heritage Educational Foundation at its discretion. If the first EAP has already been released and the beneficiary is eligible to apply for the second or third EAP, a deferral may be granted for a maximum of one year, to the beginning of the next EAP season. Further deferrals may be granted by the Foundation at its discretion.

For plans with a maturity date of July 31, 2015 or later, if the beneficiary is eligible to apply for an EAP, however he/she has not completed the previous academic level successfully, he/she can still apply for the EAP provided they are registered in eligible studies.

What if my beneficiary has failed a course/year? Does he/she get penalized?
For Heritage Plans with a maturity date of July 31, 2014 or earlier, if the beneficiary is eligible to apply for an EAP however he/she has not completed the previous academic level successfully, he/she may request to defer the first EAP for a maximum of two years after the maturity date, one year at a time, to the beginning of the next EAP season. Further deferrals may be granted by the Heritage Educational Foundation at its discretion. If the first EAP has already been released and the beneficiary is eligible to apply for the second or third EAP, a deferral may be granted for a maximum of one year, to the beginning of the next EAP season. Further deferrals may be granted by the Foundation at its discretion.

For plans with a maturity date of July 31, 2015 or later, if the beneficiary is eligible to apply for an educational assistance payment (EAP), however has not completed the previous academic level successfully, he/she can still apply for the EAP provided they are registered in eligible studies.

Alternatively, the beneficiary may also request to have the EAP held until January of the following year. The deadline to apply for the EAP on hold is January 31st.

Can the maturity date for my Heritage Plans be delayed? If so, how? 
The maturity date can be delayed one year at a time up to July 31st prior to the beneficiary's 21st birthday. This option can be selected on the maturity application under question 2, or by completing the maturity application online. Alternatively, subscribers may also request to delay the maturity date by sending a signed letter before the July 1st deadline. 

Can I substitute the beneficiary on my Heritage Plans if he/she decides not to pursue post-secondary studies?
Yes, you can. The following conditions must be met:
  • Both beneficiaries are under 21 years of age
  • The new beneficiary is younger than the original beneficiary and is a resident of Canada at the time of the substitution.
  • An EAP has not been forfeited or released to the current beneficiary
  • For a plan in which only the Canada Education Savings Grant ("CESG") is held, to transfer the CESG to the new beneficiary, the new beneficiary must be less than 21 years of age and be a sibling of the original beneficiary or related to the original subscriber by blood or adoption. Otherwise, CESG will be repaid to the government. If the plan holds the CESG plus any of the other government grants, the new beneficiary must be less than 21 years of age and be a sibling of the original beneficiary.
  • To transfer the Quebec Education Savings Incentive (QESI) to the new beneficiary, the new beneficiary must be less than 21 years of age and a sibling of the original beneficiary by blood or adoption. The new beneficiary must also be a resident of Quebec. Otherwise, the QESI will be repaid to the Government.
  • The Canada Learning Bond (CLB) will be returned to the Government since this is not transferable.
If the Heritage Plans self-determined option has been selected:
  • A substitution may occur at any time with no age restriction, provided that an EAP has not been released to the current beneficiary.
  • For a plan in which only the Canada Education Savings Grant (CESG) is held, to transfer the CESG to the new beneficiary, the new beneficiary must be less than 21 years of age and a sibling of the original beneficiary or related to the original subscriber by blood or adoption. Otherwise, CESG will be repaid to the Government. If the plan holds the CESG plus any of the other government grants, the new beneficiary must be less than 21 years of age and a sibling of the original beneficiary.
  • To transfer the Quebec Education Savings Incentive (QESI) to the new beneficiary, the new beneficiary must be less than 21 years of age and a sibling of the original beneficiary by blood or adoption. The new beneficiary must also be a resident of Quebec. Otherwise, the QESI will be repaid to the government.
  • To transfer the Saskatchewan Advantage Grant for Education Savings (SAGES) to the new beneficiary, the new beneficiary must be less than 21 years of age and a sibling of the original beneficiary by blood or adoption. Please note that the Saskatchewan Advantage Grant for Education Savings (SAGES) will be suspended effective January 1, 2018. This means SAGES will not be paid on contributions made to an RESP after December 31, 2017. Federal grants are still available to parents who save for their children's post-secondary education through RESPs. SAGES contributions will resume when the province's financial situation improves.
  • To transfer the British Columbia Training and Education Savings Grant (BCTESG) to the new beneficiary, the new beneficiary must be less than 21 years of age and a sibling of the original beneficiary by blood or adoption.
  • The Canada Learning Bond (CLB) will be returned to the government, since this is not transferable.
  • If the new beneficiary is older than the original beneficiary, please note that the lifetime contribution limits for the new beneficiary may be exceeded which could result in additional tax for all subscribers of that beneficiary.


Insurance


What is Heritage Education Optional Insurance Protection?
The Heritage Education Optional Insurance, underwritten by Sun Life Assurance Company of Canada, is available to protect the subscriber in the event that the subscriber suffers a disability or becomes deceased while still in the contribution period of the Heritage RESP.

How does the Heritage Education Optional Insurance work?
If a subscriber becomes deceased before the maturity date of the ESP Contract (a Contract made between an individual (or an individual and the spouse of the individual) and the Foundation under which the Foundation agrees to issue EAPs), upon approval of the life claim, the insurance company will pay the life insurance benefit to the Foundation, to be used by the Foundation to satisfy the applicable contributions according to the terms of the ESP Contract.

If a subscriber becomes disabled before the maturity date of the ESP Contract, the insurance company will pay the disability insurance benefit to the Foundation after a 9-month qualifying period. Upon approval of claim, the insurance company will make the applicable monthly contributions according to the terms of the ESP Contract.

Qualifying period means 9 consecutive months beginning on the date the subscriber becomes disabled and ending on the date the subscriber qualifies for benefits.

What happens if my spouse or I become deceased and there is no Insurance on my plan?
Without the Heritage Education Optional Insurance coverage, the remaining subscriber (in the case of joint subscribers) or heirs of the subscriber will be required to continue with the contributions, if applicable, in order for the plan to remain in good standing.

Who qualifies for Insurance coverage?
You are qualified for insurance coverage if you have an ESP Contract (a Contract made between an individual (or an individual and the spouse of the individual) and the Foundation under which the Foundation agrees to issue EAPs) with the Foundation as a plan subscriber or joint subscriber and you are under the age of 65 on the date of application for insurance coverage. Please note that this coverage has a pre-existing condition limitation. For more information on this limitation and for other important information regarding this coverage, please speak with your Heritage Dealing Representative.

If there are joint subscribers to an ESP Contract, the first deceased or disabled subscriber will be deemed the insured person under the policy.

How are Insurance Premiums calculated and applied?
Insurance premiums are set out in your prospectus. If you have insurance on your plan, the premium is included in your monthly or annual contribution amount however it will not attract any of the government grants.

I do not have insurance on my plan, but I would like to add it. What do I need to do?
Please contact us toll free at 1 800 363-7377 or email us at customercare@heritageresp.com. One of our Customer Service Representatives will be glad to guide you through the steps of purchasing insurance.

If I cancel my Heritage Plans, do I get insurance premiums back?
Upon receipt of your termination request that is signed by the subscriber (if the plan is jointly held, both subscribers must sign the request), the insurance premiums will be refunded only if the insurance purchase date at the time of cancellation falls within 60 days from the later of:
  1. The date the ESP Contract was accepted by the Foundation, and
  2. The effective date of insurance (the date you signed the application for insurance).
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