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Who receives the grant money in the RESP?

Is the grant money paid directly to the beneficiary or can parents withdraw these funds to cover their own expenses?


Grants are part of EAP funds and thus belong exclusively to your beneficiary. However, you (the subscriber) are the person who has to apply for the EAP, and you can decide if the payment goes to you or your beneficiary. Therefore, if you are covering the expenses for your beneficiary’s education, you can request the EAP be issued in your name.

However, remember that under current legislation, EAPs are always taxed in the beneficiary’s hands. The EAP amounts received must also be included as income on his or her tax return. Lastly, the Income Tax Act (Canada) stipulates that EAPs must be used for post-secondary education.