In order to receive CESG grant in one’s RESP once a beneficiary is 16 and 17 years old there are additional conditions that must be met. Of the following beneficiaries who will receive CESG grant?
- Andrew who turns 18 years old on December 30th of this year and whose parents have made annual contributions of $2,000 for him each year.
- Brenda who turned 16 years old this year and whose parents made two contributions of $5,000 for her when she was 5 years old and 10 years old. A total of $9,000 was withdrawn when she was 12 years old.
- Charlie who turned 17 years old this year and whose parents made annual contributions of $200 for him in each of the past 5 years.
- Denise who will turn 16 years old in December of this year and whose parents already made a $2,000 contribution for her in January of this year. This is her first RESP contribution.
Solution: Andrew will not receive CESG grant during this calendar year as he turns 18 this year. Brenda and Denise do not meet the conditions of either having made $2,000 in contributions (and not withdrawn) or $100 in contributions each year for the 4 years leading up to the calendar year in which the beneficiary turns 16 years old. Neither will receive CESG grant. The correct answer is c.