HeritageProspectuse

July 14, 2006
Continuous Offering
Units of:
HERITAGE PLANS
Sponsored by: HERITAGE EDUCATIONAL FOUNDATION
PROSPECTUS
July 14, 2006
Continuous Offering
Units of:
HERITAGE PLANS
Sponsored by: HERITAGE EDUCATIONAL FOUNDATION
PROSPECTUS

This Prospectus constitutes a public offering of these
securities only in those jurisdictions where they may be
lawfully offered for sale and therein only by persons
permitted to sell such securities. No securities regulatory
authority has expressed an opinion about these securities.
It is an offence to claim otherwise.

Contributors should note that early withdrawal of
contributions or failure to meet certain conditions may
result in loss. Please carefully review "Risk Factors" on
page 33 to fully understand the risks a__ociated with this
investment.

If Social Insurance Numbers ("SIN") for the
Member(s) and the child(ren) are not provided at
the time of enrollment, the Plan cannot be registered
under the Income Tax Act and will not be entitled to
the benefits of a Registered Education Savings Plan
("RESP"), Canada Education Savings Grant ("CESG")
Program, Canada Learning Bond ("CLB") Program
or Alberta Centennial Education Savings Plan Grant
("ACES") Program benefits. Contributions of up to
$2,000 annualized made on behalf of child(ren) for
whom a SIN has not been provided to the Foundation,
will be held in an escrow account for up to 24 months
pending receipt by the Foundation of the required
SIN (See "What if I Make Contributions Without
Registration?" on page 18). If the SIN is provided
within the 24 month period, the Member should
(provided contribution limits under the Income Tax
Act are not exceeded) be in the same position as if
the Member has enrolled initially in the registered
Plan, and the Member and Nominee will be in the

same position under the Income Tax Act, except
that interest earned on Contributions made by the
Member into the escrow account will be subject to
income tax. Contributions which are deposited from
the escrow account to the registered Plan are eligible
for CESG. If the SIN is not provided within 24 months,
Contributions (less Membership Fees, Depository
Charges and insurance premiums, if applicable) are
returned to the Member together with interest earned.
If the requisite SIN is supplied after the escrow
period, a Member may reactivate the Plan and in such
event will receive credit for all Membership Fees
paid. The amount of fees deducted may exceed the
amount of income earned on escrowed Contributions.
Accordingly, Members who do not expect to obtain
a SIN for a child within 24 months of enrollment are
advised not to enroll or make Contributions to a Plan.

Educational a__istance Payments made under the Group
Plan are derived from investment income, government grants
described herein and monies from the Enhancement Fund
as described herein. Payments from the Enhancement Fund
are discretionary; there is no set formula for Enhancement
Fund payments and Nominees have no contractual right to
these payments. There can be no a__urance that sufficient
funds will be available in the Enhancement Fund or that
the Foundation will exercise its discretion to make any
such payments in any given year.

Neither the Foundation nor the Plans are a__ociated
with the Government of Alberta or the Alberta Heritage
Savings Trust Fund.

H
H
eritage Education Funds has been
building the future of Canada since
1965. In 2005, we celebrated our 40th
year of helping families plan and save for
their children's post-secondary education.
Heritage Education Funds has always been
about the future and we look forward to
helping more families in Canada meet their
education needs in the years ahead.


TABLE OF CONTENTS

SUMMARY OF THE PLANS OFFERED BY THIS PROSPECTUS 2
What are the Heritage Plans? 2
What is a Registered Education Savings Plan (RESP)? 2
Why Should I Invest in an RESP? 2
When Should I Start Saving for my
Child's Future Post-Secondary Education? 2
What is the Canada Education Savings Grants
(CESG) Program? 2
What is the Canada Learning Bond (CLB)? 3
What is the Alberta Centennial Education
Savings Plan (ACES) Grant? 3
How do the Heritage Plans Help Me Save
for My Child's Education? 3
How do the Plans Work? 3
Contribution Period 3
Payout Period 4
What Are the Fees and Expenses? 10

HERITAGE EDUCATIONAL FOUNDATION 12
What is the Heritage Educational Foundation? 12
Foundation Awards 12
The Heritage Plans - A Different Kind of RESP 12
How Do I Learn More About the Heritage Plans? 12
The Heritage Educational Foundation 12

REGISTERED EDUCATION SAVINGS PLANS 13
What are the Benefits of Opening a
Registered Education Savings Plan (RESP)? 13
Regulations Governing RESPs 13
How Much Can I Contribute? 13
Are There any Exceptions to When the RESP
Must be Collapsed? 14

CANADA EDUCATION SAVINGS GRANT 14
What is the Canada Education Savings Grant
(CESG) Program? 14
How do I Get the Grant? 15
What if I Have Not Taken Advantage
of the CESG in Past Years? 15
Other Canada Education Savings Grant Provisions 15

CANADA LEARNING BOND 16
What is the Canada Learning Bond (CLB) Program? 16
What Happens if I Don't Apply
for the CLB Right Away? 16
Are There any Other CLB Provisions? 16
When Must CLB be Repaid? 16

ALBERTA CENTENNIAL EDUCATION SAVINGS (ACES) GRANT 17
What is the Alberta Centennial Education
Savings Plan Grant (ACES) Program? 17
How Does the Program Benefit me? 17
How do I Get the ACES Grant? 17
When Must the ACES Grant be Repaid? 17

THE HERITAGE PLANS 17
How do I Enroll in the Plans? 18
What are the Contribution Options
Under the Group Plan? 18
Contribution Schedule 18
Where Do My Contributions Go? 18
What if I Make Contributions Without Registration? 18
How do I Obtain a Social Insurance Number? 19
Can I Change my Contribution
Method at a Later Date? 19
Is There Any Insurance Coverage Available
to Protect my Contributions? 19
Can I Purchase More Units Later? 20
Can I Reduce Units at any Time? 20
What Happens if I Stop Making My Contributions
Under the Group Plan? 20
What Fees or Expenses are Involved
in Opening an RESP? 20
Membership Fee 20
Are my Membership Fees Returned? 21
Other Fees 21
What Happens If I Terminate the Plan? 21
Within 60 days 21
After 60 days 22
Can I Reactivate my Plan if it Becomes Inactive? 22

PLANNING FOR POST-SECONDARY EDUCATION 23
How Do I Get Money Out for
Post-Secondary Education? 23
What if my Nominee is Advanced
in Academic Studies? 23
What are the Required Program Qualifications? 23
What Qualifies as a Recognized Institution? 23
What are the Maturity Options
Under the Heritage Plans? 23
Is there a Time Limit on Having an RESP? 23
Change in Maturity Date, Year of Eligibility
or Educational a__istance Payments 24


SCHOLARSHIP OPTION 24
What is the Scholarship Option? 24
How Does my Nominee Become a Qualified Student? 25
What Makes up the Scholarship Fund? 26
How are the Educational a__istance
Payments Calculated? 26
What is the Enhancement Fund? 27
What Happens if the Nominee Does Not Become
Qualified for Educational a__istance Payments? 28
Can I Change the Nominee? 28
Are my Membership Fees Returned? 28
Notice of Maturity 28

SELF-DETERMINED OPTION 29
What is the Self-Determined Option? 29
When Must I Select the Self-Determined Option? 29
What Money do I Receive Under
the Self-Determined Option? 29
Are my Membership Fees Returned? 30
How Does my Nominee Become
a Qualified SD Student? 30
What Happens if my Nominee Does Not
go on to Post-Secondary Education? 30
How do I Receive an Accumulated Income Payment? 30
Can I Change the Nominee? 31
Can I Contribute Additional Amounts
to a Self-Determined Plan? 31

SUMMARY OF THE PAY-OUT PERIOD OPTIONS 31

ADMINISTRATION OF THE PLANS 32
Investment Policies 33
Expenses of Administration 33
Scholarship Committee 33

RISK FACTORS 33
No Entitlement to Income 33
Failure to Provide SIN 33
Early Withdrawal and Default from Heritage Plans 34
Failure to Notify Foundation of Enrollment 34
Nominee Does Not Attend a
Post-Secondary Program 34
Scholarship Option 34
Self-Determined Option 34
Return of Membership Fees 34
Possibly No Return on Investment 34

What Happens if I cannot be located? 34
Investment Risks 34
Having Selected the Scholarship Option,
What if I Fail to Apply or am Late in Applying
for an Educational a__istance Payment? 35
In Selecting an Educational a__istance
Payment Option, What if I Don't Attend
a Program of Length Selected? 35
TAX STATUS 35
Tax Status of Foundation 35
Tax Status of Plans 35
Tax Status of Member and Nominee 36
Goods and Services Tax 36
AMENDMENT OF CONTRACTS AND TRUST INDENTURE 37
STATEMENT TO MEMBERS 37
PLAN OF DISTRIBUTION 37
DIRECTORS AND OFFICERS OF THE FOUNDATION 38
Remuneration of Directors of the Foundation 38
DIRECTORS AND OFFICERS OF THE DISTRIBUTOR 39
MATERIAL CONTRACTS 39
PROMOTER 39
MEMBERS' STATUTORY RIGHTS 39
CONTRIBUTION SCHEDULE FOR EACH HERITAGE PLANS' UNIT 40
INSURANCE SCHEDULE FOR EACH GROUP PLAN UNIT 41
AUDITORS' CONSENT 42
AUDITORS' REPORT 43
GLOSSARY OF TERMS USED IN THIS PROSPECTUS 57
CERTIFICATE OF HERITAGE EDUCATIONAL FOUNDATION 60
CERTIFICATE OF DISTRIBUTOR AND PROMOTER 61


SUMMARY OF THE PLANS OFFERED
BY THIS PROSPECTUS

This summary highlights important information
about the Plans offered by Heritage Education
Funds Inc. However, we encourage you to read
the entire prospectus, as this summary does not
contain all the information you should consider
before enrolling in the Plans. A Glossary of Terms
used in this Prospectus is at page 57.

What are the Heritage Plans?

The Heritage Plans (Group Plan and Self-Determined Plan)
are Education Savings Plans designed to help parents,
grandparents and other interested persons save towards the
future cost of a child's post-secondary education. For eligible
Plans the Foundation will apply to the Canada Revenue
Agency ("CRA") on your behalf to obtain registration of
your Plan under the Income Tax Act in order to become a
Registered Education Savings Plan ("RESP").

A Member enrolls in the Group Plan initially. Prior to
the Maturity Date, the Member elects either the Scholarship
Option (and remains in the Group Plan) or elects the Self-
Determined Option (and then continues with a Self-
Determined Plan).

Two separate trusts are maintained, one for the Heritage
Plans (Group Plan and Self-Determined Plan) and one for
the escrow account referred to under "What if I Make
Contributions Without Registration?" on page 18.

What is a Registered Education
Savings Plan (RESP)?

RESPs are tax sheltered education savings plans established
under the Income Tax Act to allow you, the Member, to
save money for a child(ren)'s post-secondary education.
Contributions to an RESP are not tax deductible, however
the income earned through an RESP is not taxable while
it remains in the RESP. When a Nominee becomes a
Qualified Student the principal is returned to either the
contributor or Qualified Student tax free and the income
earned in an RESP will be taxable in the hands of the
student. Since most students usually have little or no
taxable income the earnings will attract little or no tax.

The maximum you may contribute to an RESP under
current legislation is $4,000 per year for each eligible
child, up to a lifetime limit of $42,000.

Why Should I Invest in an RESP?

Things have changed a lot and today a child's need for a
post-secondary education has never been greater. At the
same time the cost of obtaining a post-secondary education
continues to rise. Investing in an RESP is an effective way
to save for your child's future!

When Should I Start Saving for my
Child's Future Post-Secondary Education?

There is no time like the present! As a parent, grandparent
or a concerned adult you are going to have to consider
your child's educational savings needs. By starting an
Education Savings Plan early it allows you the opportunity
to plan ahead and gives you more flexibility in determining
what sort of education you want for your child(ren). You
will also benefit in having more time to grow the value of
your plan through greater benefits of compounding interest,
government grant incentives and tax sheltered growth.

What is the Canada Education
Savings Grants (CESG) Program?

Introduced in 1998, the Canada Education Savings Grant
("CESG") is a grant from the Government of Canada for a
child's education after high school. In opening an RESP
you will be able to receive the grant. The amount of the
grant for eligible children is dependent upon your family
net income and is calculated as follows:

•
For families with net income below $36,378*
the CESG will be 40% of the first $500 of annual
contributions into an RESP and 20% of the next
$1,500 of annual contributions. The maximum
annual grant will be $500 per child.
•
For families with net income between $36,378* and
$72,756* the CESG will be 30% of the first $500 of
annual contributions into an RESP and 20% of the
next $1,500 of annual contributions. The maximum
annual grant will be $450 per child.
•
For families with net income of more than $72,756*
the CESG will be 20% of the amount contributed up
to a maximum annual grant of $400 per child.
•
The lifetime maximum of all CESG is $7,200 per child.
* This amount is updated each year based on the rate of
inflation.
2


Children accumulate CESG contribution grant room of
$2,000 per year for each year of their life commencing
with the year which is the latest of the year of birth, the
year the child became a resident of Canada, or 1998. This
continues up to and including the year the child turns
17 years old.

In not contributing the maximum amount of money
that is eligible for CESG in any one year, any unused
CESG contribution room can be carried forward. You may
use your CESG carry-forward room at any time, however
as the maximum contribution to an RESP is currently
$4,000, the maximum grant you can receive in any one
year is $800 (plus up to $100 of additional CESG based
on family income) (See "What if I Have Not Taken
Advantage of the CESG in Past Years?" on page 15).

What is the Canada Learning Bond (CLB)?

Children born on January 1, 2004 or later who qualify for
the National Child Benefit Supplement ("NCBS"), the
Government of Canada will provide a Canada Learning
Bond ("CLB") in the amount of $500. These funds will be
deposited into your RESP account and invested along with
any other contributions you may choose to make. An
additional $25 will be paid by the Government of Canada
with the first $500 bond to help cover the cost of opening
your RESP. In each subsequent year that the child remains
eligible for the NCBS until the year the child turns 15 years
of age, the Government of Canada will contribute an
additional $100 into your CLB account.

What is the Alberta Centennial Education
Savings Plan (ACES) Grant?

If you are a resident of Alberta, the Provincial Government
has established a grant of $500 which will be paid into an
RESP for every child born in Alberta on January 1, 2005 or
later. Additional grants of $100 will be paid into the RESPs
of eligible children when they turn 8, 11 and 14 provided
they are, at that time, enrolled in school in the province of
Alberta and have met any minimum contribution levels
required by the Government of Alberta. Under a legislative
amendment passed in the fall of 2005, all children (not
only those born January 1, 2005 or later) will be eligible
for the grants in the years they reach these ages, provided
parents invest at least $100 in an RESP before applying for
the grant. The details of this new program have yet to be
worked out. For more information on the ACES program
refer to the Government of Alberta website -

How do the Heritage Plans Help
me Save for my Child's Education?

Heritage Education Funds Inc. ("Heritage Education
Funds"), specialists in education savings, has been helping
families plan and save for their children's post-secondary
education for over 40 years. Whether your child chooses
an eligible university, college or trade school in Canada or
abroad, a Heritage Plan can help pay for the costs of postsecondary
education.

With your Heritage Plan, your Principal is returned at
maturity and over the years the Heritage Plans have
consistently delivered safe, stable and positive investment
returns enhanced with discretionary contributions from
the Enhancement Fund which have added to the value of
Plans and the overall rate of return on your investment.

As a Member and on behalf of a Nominee you agree
to contribute to Units according to a pre-determined
Contribution Schedule. Once the Plan reaches maturity,
the money in it can help fund everything from tuition and
books, to less obvious expenses, such as basic living
expenses, computers and transportation.

After deducting the fees described elsewhere in this
Prospectus, the Contributions are held in an account
maintained by the Trustee, RBC Dexia Investor Trust
Services. Once contributed, your money is pooled with
that of other Members and is invested over the long term,
primarily in guaranteed Canadian investments, such as
investment certificates, debentures, bonds, mortgage-backed
securities and Variable Rate Securities, most of which are
guaranteed by the Government of Canada or any province
or municipality of Canada, as directed by the Foundation.

How do the Plans Work?

When you think of a Plan, think of it as having two distinct
periods: the contribution period, when you make your
Contributions, and the pay-out period, when there is a
return of your Principal and earnings in the form of
Educational a__istance Payments.

Contribution Period

At the time of enrolling in the Heritage Plans, you need to
decide, based on when you expect the child to enter postsecondary
education, how much you wish and can afford
to contribute and the length of time over which you would
like to make Contributions. These decisions will affect the
total amount of your Contributions. Refer to the "Contribution
Schedule for Each Heritage Plans Unit" on page 40.

3


After these decisions have been made, you make your
first Contribution and the Contribution period begins. Your
Contributions then continue based upon the schedule you
selected.

The Contribution method selected can be changed at
anytime in the future should your needs change. In changing
to another Contribution Schedule you will pay an adjustment
in Contributions and interest, as calculated by the Foundation.
This adjustment is to ensure that regardless of the Contribution
method selected, each method will earn approximately an
equal amount of interest earnings at Maturity.

Payout Period

The pay-out period begins once the child has enrolled in
an eligible Post-Secondary Program. Prior to the Maturity
Date you will elect either the Scholarship Option and remain
in the Group Plan or the Self-Determined Option and
continue with the Self-Determined Plan. If you continue
in the Group Plan your interest in the Plan will follow one
of three different paths selected by you in advance and best
determined by the type of Post-Secondary Program your
child is entering. For those child(ren) enrolling in at least
a 2 year qualified Post-Secondary Program the Scholarship
Option (which has three options to chose from) is likely
the best choice. In those situations where the qualified
Post-Secondary Program is less than 2 years then the Self-
Determined Option is likely the best choice. Refer to "What
are the Maturity Options Under the Heritage Plans?" on
page 23.

All Nominees are mailed a standard application form
and proof of registration form in the Year of Eligibility and, in
the case of Scholarship Plan Nominees, in each subsequent
year up to the end of their educational program. If the
Member elects the Self-Determined Option (such election
to be made prior to the Maturity Date), a subsequent
application form is mailed requesting additional information.
Scholarship Option Nominees must complete the forms,
have them signed and sealed by the registrar of the educational
institution and returned to the Foundation before August
15th in each year of the Nominee's eligible post-secondary
studies.

For those Nominees electing the Self-Determined Option,
it is the responsibility of the Nominee to request ongoing
applications from the Foundation for Educational a__istance
Payments.

The Foundation will notify the Member prior to
December 31st in the 25th year following the year in
which the Contract was entered into if funds remain in
the Plan at such time (the 30th such year if the Plan is a
Specified Plan and the Member has selected the Self-
Determined Option).

A general comparison of the principal characteristics of
the Heritage Plans follows:

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GENERAL COMPARISON - HERITAGE PLANS

SCHOLARSHIP OR GROUP OPTION (AND PLAN) SELF-DETERMINED OPTION (AND PLAN)
General Plan Overview The Heritage Plans are a pooled education savings plan. By enrolling, Members are required
to make regular Contributions based on a Contribution Schedule. The Plans are designed for
children under the age of 15. Qualified students receive Educational a__istance Payments
("EAP") which are paid annually for up to 3 years depending on the Option elected at Maturity.
Both Plans enjoy the benefits of safe and secure investments.
Eligible Child One child who is a resident of Canada and under the age of 15 when named.
In order for an Education Savings Plan to become registered and become eligible for the tax
benefits and Government Grants described in this Prospectus the Foundation must be provided
with the SIN of the Member and Nominee (See "How do I Enroll in the Plans?" on page 18).
Member Contributions • Choice of seven Contribution Schedules
(See "Contribution Schedule For Each Heritage Plans Unit" on page 40).
• You may switch Contribution modes at any time (subject to the payment of any additional
Contributions and required interest adjustment).
• You may make additional Contributions.
• Amount of your Contribution depends on the frequency of contributions, the number of Units
subscribed to and age of the child at the time of enrollment.
• Minimum: $4.99 per month (including optional insurance premium).
• Maximum: $4,000 per year, $42,000 lifetime, per eligible child.
Canada Education The amount of the CESG for eligible children is dependent upon your family net income and is
Savings Grants calculated as follows:
(CESG) Program • For families with net income below $36,378* the CESG will be 40% of the first $500 of
annual contributions and 20% of the next $1,500 of annual contributions. The maximum
annual grant will be $500 per child.
• For families with net income between $36,378* and $72,756* the CESG will be 30% of
the first $500 of annual contributions and 20% of the next $1,500 of annual contributions.
The maximum annual grant will be $450 per child.
• For families with net income of more than $72,756* the CESG will be 20% of the amount
contributed up to a maximum annual grant of $400 per child.
• The c__ulative maximum of all CESG is $7,200 per child.
* This amount is updated each year based on the rate of inflation.
Canada Learning A federal government grant of $500 for children born on January 1, 2004 or later who
Bond (CLB) qualify for the National Child Benefit Supplement ("NCBS"). In each subsequent year that the
child remains eligible for the NCBS until the year the child turns 15 years of age, the grant is
increased by an additional $100.
Alberta Centennial An Alberta provincial grant of $500 for children born on or after January 1, 2005. Additional
Education Savings grants of $100 will be paid into the RESPs of eligible children when they turn 8, 11 and 14
Plan (ACES) provided they are, at that time, enrolled in school in the province of Alberta and have met any
minimum contribution levels required by the Government of Alberta. A legislative amendment
passed in the fall of 2005 will permit all children to be eligible for the grants provided parents
invest at least $100 in an RESP before applying for the grant. The details of this new program
have yet to be worked out. For more on the ACES program refer to the Government of Alberta

5


GENERAL COMPARISON - HERITAGE PLANS (continued)

SCHOLARSHIP OR GROUP OPTION (AND PLAN) SELF-DETERMINED OPTION (AND PLAN)
How Your Your Contributions are pooled for investment purposes with that of other Members and are
Contributions invested over the long term, primarily in guaranteed Canadian investments, such as investment
Are Invested certificates, debentures, bonds, mortgage-backed securities and variable rate securities, most of
which are guaranteed by the Government of Canada or any province or municipality in Canada.
Plan Choices By enrolling into the Heritage Plans, at the Maturity Date your interest will follow one of two
different paths as selected by you, called the Scholarship Option (continuing in the Group Plan)
or the Self-Determined Option (continuing in the Self-Determined Plan). Your selection will
usually depend on the type of post-secondary program your child is entering.
The Scholarship Option will likely be the best
option for you if your child enrolls in and
completes at least a two-year qualified postsecondary
program. In selecting the Scholarship
Option you will choose from one of three payout
streams tailored to the two, three or four year
academic program selected by the Nominee.
If you have selected the Self-Determined
Option, your Principal is returned on the
Maturity Date with the Educational a__istance
Payments made to your Nominee in amounts
with the timing as selected by you.
Qualifying Academic
Program
Nominees under the Scholarship Option:
• The program of study must be at least two
years in duration and attended for at least
6 months of the year. The Nominee must
enroll in successive academic years to qualify
for the Educational a__istance Payments
dependent on the option program selected.
Four one-year programs are also eligible.
Nominees under the Self-Determined Option:
• For studies in Canada, the program must be
a minimum of three weeks in duration and
full time of at least 10 hours per week,
within a recognized educational institution.
• For studies in a country other than Canada,
the program must be a minimum of thirteen
consecutive weeks long.
Educational a__istance
Payments (EAPs) -
once Nominee
enters a qualifying
Post-Secondary Program
Qualified Students for whom the Scholarship
Option is selected at maturity share in the
income earned on Contributions with other
students who are starting school in the same
year. One of three options are selected:
• Option #1 provides the EAP
in one annual payment;
• Option #2 provides the EAPs
in two annual payments;
• Option #3 provides the EAPs
in three annual payments.
In all three options the EAP includes eligible
CESG and, if applicable, CLB and ACES,
together with interest earned thereon. The
Nominee is eligible to receive Educational
a__istance Payments for one year programs
as long as successful completion has been
attained in the previous academic year.
Qualified Students for whom the Self-
Determined Option is selected at maturity
receive interest on their own Plan plus CESG,
and, if applicable, CLB and ACES, together
with the interest earned thereon and is paid to
the Nominee in increments as determined by
you once the Nominee has entered a Post-
Secondary Program.
Under either the Scholarship Option or the Self-Determined Option the first withdrawal is
limited to a $5,000 limit during the first 13 weeks of a qualifying educational program. EAPs
to qualified students in subsequent years will be based on the total value of their program.

6


GENERAL COMPARISON - HERITAGE PLANS (continued)

SCHOLARSHIP OR GROUP OPTION (AND PLAN) SELF-DETERMINED OPTION (AND PLAN)
Accumulated Income
Payments (AIPs) -
Without a Qualified
Student
Nominees for whom the Scholarship Option
is selected cannot receive AIPs, except as
provided under "CESG, CLB and ACES
Repayment" below.
Nominees for whom the Self-Determined
Option is selected may receive an AIP that
consists of the accumulated income earned
on Principal, CESG, CLB and ACES. For AIPs,
payments:
• Must be made to, or on behalf of,
a Member resident in Canada;
• Cannot be made jointly to, or on behalf of,
more than one Member; and
• Either: (i) Must be made not less than
10 years following the year the Plan was
entered into and each current and former
Nominee is 21 and not eligible for EAPs;
or (ii) Must be made in the 25th year after
the Plan entered into (the 30th year if the
RESP is a Specified Plan), or (iii) the
Nominee is deceased.
A withdrawal of interest at a time when the
child is not a Qualified Student will result in
the termination of the RESP not later than
April 30 in the year immediately following
the year in which the first such withdrawal
is made.
Change in Nominee For Nominees in the Scholarship Option and
prior to the Maturity Date, changes may be
made to any child who is not older than the
original Nominee (unless both are under age
15), the new SIN is provided and Contributions
and interest are adjusted. After the Maturity
Date, certain restrictions apply
(See "Can I Change the Nominee?" on page 28).
For Nominees in the Self-Determined Option
changes may be made to any individual
(including the Member) at any time. To be
eligible to keep the CESG, CLB and ACES,
either:
• The substituted Nominee is under the age of
21 and is the brother/ sister of the former
Nominee; or
• Both the original and substituted Nominee
are under the age of 21 and are related to
the Member (by blood relation or adoption).
Depending upon the age of the existing Nominee and his/her relationship to the new Nominee, tax
and other financial consequences may result, such as the reallocation of Principal to income and/or
the repayment of CESG, CLB and ACES. The new Nominees must be a Canadian resident (unless
the change to the new Nominee is in conjunction with a transfer of property from another RESP).
Note: Under certain situations the Nominee can be transferred to the name of the Member(s) for their
own educational pursuit.

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GENERAL COMPARISON - HERITAGE PLANS (continued)

SCHOLARSHIP OR GROUP OPTION (AND PLAN) SELF-DETERMINED OPTION (AND PLAN)
Investment Return Nominees for whom the Scholarship Option
is selected receive a return of Principal, plus
interest earned on your Plan, plus CESG and,
if applicable, CLB and ACES, together with
interest earned thereon, plus a share of the
interest earned by other Contributors whose
Nominees do not qualify for Educational
a__istance Payments and may include an
amount equal to 25%, 50% or 100% of
your Membership Fees, dependent upon the
EAP Option elected, and a discretionary
portion of the Enhancement Fund.
Nominees for whom the Self-Determined
Option is selected receive a return of Principal,
plus interest earned on the Plan, plus CESG
and, if applicable, CLB and ACES, together
with interest earned thereon.
Life and Disability
Insurance
At enrollment if prior to age 65, the Member has the option to purchase group term insurance
that ensures the continued payment of Contributions in the event of the Member's death or total
disability.
CESG, CLB and
ACES Repayment
If you withdraw your Principal or terminate your Registered Education Savings Plan Contract at
a time when the Nominee is not a Qualified Student, CESG, CLB and ACES must be returned to
the government. If the AIP requirements (see above) have been met then, at the Member's
option, interest earned on CESG, CLB and/or ACES will be distributed to the Member or transferred
into that Member's RRSP.
For Qualified Students for whom the
Scholarship Plan has been selected, if the AIP
requirements (See "What Happens if the Nominee
Does Not Become Qualified for Educational
a__istance Payments?" on page 28) have not
been met, then either: (a) such earnings will
be distributed to a Designated Educational
Institution, or (b) if the AIP requirements
would be satisfied if the Foundation continued
to hold such interest until the Contract would
have been 10 years old, then the Member will
have the option to defer receipt of such
interest until that time.
For Qualified Students for whom the Self-
Determined Plan has been selected, if the AIP
requirements (See "How Do I Receive an
Accumulated Income Payment?" on page 30)
have not been met, then such earnings must
remain in the Plan until such requirements are
met. If any earnings remain in the Plan in the
25th year after the Plan was entered into (the
30th year if the Plan is a Specified Plan) and
the Foundation is not instructed by the
Member to distribute such earnings as an AIP,
then such earnings will be distributed to a
Designated Educational Institution.

8


GENERAL COMPARISON - HERITAGE PLANS (continued)

SCHOLARSHIP OR GROUP OPTION (AND PLAN) SELF-DETERMINED OPTION (AND PLAN)
Transferring to Should you decide to collapse your Plan and transfer its eligible proceeds to another RESP
Another Plan provider, the transferred amount will include:
• Your Contributions (less Membership Fees, transfer fee, depository charges) and less
insurance premiums if applicable.
• CESG and ACES Grants if the RESP provider complies with the Income Tax Act and CESA/ACES
requirements, and is for the same Nominee or a sibling who is under the age of 21.
• CLB if the new plan is for the same Nominee and no other beneficiaries other than the
Nominee's siblings and if the new RESP provider complies with the Income Tax Act
and CESG requirements.
• Income earned on government grants provided that the grants themselves are eligible for
transfer.
In transferring your eligible Contributions you will forfeit all income earned on your Contributions.
Tax Considerations Contributions to an RESP are not tax-deductible. Return of Principal and Membership Fees are
not taxable.
• EAPs paid to a Qualified Student are taxable income to the Qualified Student.
• Qualified Students not a resident of Canada may be subject to withholding taxes of up to 25%.
• Under the Income Tax Act, RESP Contributions are limited to $4,000 per year per eligible
child and $42,000 lifetime limit.
• Over-contributions will be subject to a penalty tax of 1% per month and must be withdrawn
from the Plan.

Other differences exist and are described in full elsewhere throughout the Prospectus.

9


Heritage Plans - What Are the Fees and Expenses?

Fee Amount Paid from Paid to
Membership Fee $100.00 per Unit, (pro rata basis for fractional units).
Early Contributions are fully applied to the Membership
Fee until one-half of the total Membership Fee has been
paid. After that, 50% of all future Contributions are applied
to the Membership Fee until it has been paid in full.
NOTE: An amount equal to 25%, 50% or 100% of
Membership Fees may, at the discretion of the
Foundation, be applied to the Educational a__istance
Payments (depending on your election made
regarding the pay-out of Educational a__istance
Payments), unless, at maturity, you transfer to the Self-
Determined Option as described below.
Contributions Distributor
Optional Amounts vary (See "Insurance Schedule For Each Contributions Insurer, which pays
Insurance Heritage Plans Unit" on page 41). (if selected by a fixed and variable
Premium Member) percentage of
insurance premiums
to the Distributor
(45% in 2005)
Depository Fees Lump sum single contribution - $3.50 plus GST1; Principal, Foundation
(per year per Annual contribution - $6.50 plus GST1; collected (which pays it
Contract) Monthly contributions - $10.00 plus GST1
(Subject to amendment in future by the Foundation
upon prior notice given to Members).
quarterly in
arrears
to the Distributor)
Trustee's Fee(2)(3) The annual rate of fees payable to the Trustee is
calculated according to the following formula: .015 of
1% on the first $500 million and .010 of 1% of
amounts in excess of $500 million of funds held by
the Trustee. In addition, the Trustee receives $14.00
for each purchase or sale of securities in the
investment portfolio.
Plans, from
interest before
allocation
Trustee
Portfolio .05% to .20% per annum of the average market Plans, from Scotia Cassels
Management Fee value of a__ets in the Plans (.055% in 2005). interest before
allocation
Investment Counsel
Limited, a registered
investment advisor
Administration
Fee
.50% of principal and interest on Contributions, CESG
and interest, CLB and/or ACES where applicable and
interest annually.
(Subject to amendment in future by the Foundation
upon prior notice given to Members).
Plans, from
interest before
allocation
Foundation
(which pays it
to the Distributor)

(1) The Harmonized Sales Tax (HST) applies in lieu of GST in the Provinces of New Brunswick, Nova Scotia and Newfoundland.
(2) These fees may be reduced at the discretion of the Foundation.
(3) In 2005 the Distributor paid the Trustee Fee.
10


Heritage Plans - What Are the Fees and Expenses? (continued)

Fee Amount Paid from Paid to
Late return of
Applications for
Educational
a__istance
Payment after
August 15th
deadline
$75.00 Student-
deducted from
Educational
a__istance
Payment
amount
Foundation
(which pays it
to the Distributor)
Miscellaneous
Fees
Return Item Fee and Special Process Fees -
up to $10.00 per item.
Member. If not
paid by Member,
deducted from
Principal
Foundation
(which pays it
to the Distributor)
Withdrawal Fee (Self-Determined Plan only) -
$10.00 for each withdrawal in excess of one per year.
Member Foundation
(which pays it
to the Distributor)
Transfer to
Another RESP
$50.00 per transfer Member Foundation

If you decide to withdraw from the Heritage Plans prior to the Maturity Date, you will lose all of your Membership Fees
paid to the date of withdrawal and will lose all interest earned. You will not be eligible for any future Membership Fee
returns or return of interest. These are important considerations when deciding whether to withdraw or transfer from the
Heritage Plans.

11


HERITAGE EDUCATIONAL FOUNDATION

What is the Heritage Educational Foundation?

The Heritage Educational Foundation (the "Foundation")
is one of Canada's leading providers of pooled education
savings plans. Incorporated on December 1, 1986, the
Foundation is a non-profit corporation without share
capital incorporated under the Canada Corporations Act.

The Foundation's objective is to encourage parents,
grandparents or other interested persons to save for their
children's advanced education through a planned savings
program - The Heritage Plans ("Plans") - and in so
doing provide financial and other a__istance to students
who attend programs of education at post-secondary
institutions. The Foundation administers one of the largest
active funds of education savings plans in Canada with
invested a__ets that exceed $1.07 Billion, and over the
past 19 years has returned more than $160 Million in
Principal and Educational a__istance Payments to
Qualified Students.

The Foundation is responsible for the Plans, co-ordinates
functions provided by the Depository Trustee, Scholarship
Trustee, custodian and portfolio advisor and has appointed
Heritage Education Funds Inc. as the Distributor, which
is the corporation that offers enrollment in the Plans to
Members through its more than 1500 dedicated sales
representatives, and which is a for-profit corporation
deriving the majority of its income from Membership Fees
(See "Plan of Distribution" on page 37).

Foundation Awards

The Foundation has established other socially responsible
initiatives such as the National Excellence Awards for
Teachers ("NEAT") Awards and the Post-Graduate Awards.

National Excellence Awards for Teachers (NEAT)

The NEAT Awards give school and pre-school communities
the opportunity to honour talented, inspiring and dedicated
teachers whose efforts often go unacknowledged. The
Awards recognize teachers who are making significant
contributions to education and are thereby helping to raise
the status of the teaching profession in Canada. In 2005,
four deserving teachers who excelled in their profession
were awarded $20,000 in total.

Post Graduate Awards

The Post Graduate Awards recognize the achievements
and contributions of students who are pursuing education
beyond the under graduate level. Each year the Post
Graduate Awards will acknowledge individual students
who have an excellent academic record and have also
contributed significantly to their family, community and
social responsibilities. The awards are open to individuals
who have received their final Educational a__istance
Payment, are under age 27 (as of January 1st in the year
of application) and who submit their application to the
Foundation before June 30th in each particular year.
Applicants need to provide details that include official
transcripts, academic contributions, social contributions,
career objectives, a personal outline and letters of reference
and must demonstrate a need for a__istance. The Awards
are determined on a competitive basis by a committee of the
Foundation's board of directors. Candidates are encouraged
four post-graduate students were awarded $25,000 in total.

The Heritage Plans - A Different Kind of RESP

The Heritage Plans offer parents, grandparents and other
interested persons the opportunity to save for their
child(ren)'s post-secondary schooling that is different than
other savings plans offered by the banks and mutual fund
companies. A Heritage Plan offers investor confidence in
having its investments governed by conservative investment
guidelines yet Members benefit from historically strong
investment performance and through Plan features unique
to pooled scholarship plans.

This prospectus qualifies the Heritage Plans which are
available for purchase to new investors.

How Do I Learn More About the Heritage Plans?

The Heritage Plans are distributed exclusively by Heritage
Education Funds Inc. across Canada through its licensed
sales representatives. Contact 1.800.739.2101 for the
sales representative in your area or visit our website at:

The Heritage Educational Foundation

The principal office of the Foundation is Suite 700,
2005 Sheppard Avenue East, Toronto, Ontario, M2J 5B4,
Telephone: 1.800.739.2101, Local: 416.502.2500,
Fax: 416.502.2555, E-Mail: customercare@
heritageresp.com. You can contact the Distributor,
Heritage Education Funds Inc., at the same address.

12


REGISTERED EDUCATION
SAVINGS PLANS

What are the Benefits of Opening a Registered
Education Savings Plan (RESP)?

Registered Education Savings Plans are established under
the Income Tax Act to allow parents, grandparents and
other interested persons to save money for a child's postsecondary
education on a tax deferred basis. Advantages
of having an RESP include:

•
Income earned on Contributions to an RESP is not
taxed during the life of the Plan and can compound
tax free for up to 25 years (30 years if the RESP is a
Specified Plan and the Member has selected the
Self-Determined Option). Note: the Contributions
themselves are not deductible by a Member for
income tax purposes.
•
When income is paid out as an Educational a__istance
Payment, it is taxed in the hands of the Qualified
Student, normally at a lower rate than the Member.
•
Contributions made to an RESP for an eligible Nominee
will receive the Canada Education Savings Grant from
the Government of Canada in an amount ranging from
20% to 40% (depending on your family net income)
of the amount you contribute, up to a maximum grant
ranging from $400 to $500 per Nominee per year,
with a total lifetime Grant of $7,200 per Nominee.
•
In establishing an RESP you may also be eligible to
receive the Canada Learning Bond and/or the Alberta
Centennial Education Savings Grant.
•
All Grant monies received into your RESP will be
invested within the Plan and earn tax deferred income.
•
If a Nominee does not go on to a post-secondary
education, you may be able to transfer the earnings
to your RRSP or spousal RRSP or withdraw earnings
(subject to tax) provided certain conditions are met
(See "How Do I Receive an Accumulated Income

Payment?" on page 30).

Regulations Governing RESPs

A summary of the more significant regulations governing
RESPs include:

•
A child must be a resident of Canada to be designated
as a Nominee or to have contributions made on his or
her behalf (excepting for transfers from another RESP).
For your education savings plan to be registered
and receive the benefits of an RESP the Nominee's
social insurance number ("SIN") must be provided to
the Foundation for submission to CRA. If the SIN of

the nominated child is not provided at the time of
enrollment, contributions will be held in an Escrow
Account for up to 24 months pending the provision
of the SIN.

•
Income earned on Contributions held in the Escrow
Account awaiting the Nominee's SIN is taxable to the
Member. Any income earned on Contributions
refunded to the Member for failing to provide SINs
will also be taxable in the hands of the Member.
•
Contributions can be made for up to 21 years following
the year your Plan was entered into (25 years following
the year your Plan was entered into if it is a Specified
Plan and you have selected the Self-Determined Option),
however, the Plan must be collapsed no later than
December 31st of the 25th year following the year your
Plan was entered into (the 30th such year if your Plan
is a Specified Plan and you have selected the Self-
Determined Option). Nominees must be a resident of
Canada each time a Contribution is made, but Members
are not required to be residents in Canada when they
make Contributions.
•
The Educational a__istance Payments, comprised of
income, grants and income on the grants, are payable
to Qualified Students enrolled in a Post-Secondary
Program at a Recognized Institution. Income received
is intended to offset costs a__ociated with attending
post-secondary school.
•
A Qualified Student may not receive more than $5,000
unless he or she has completed at least 13 weeks of a
Post-Secondary Program during the previous 12 months.
•
Should your RESP be terminated early or fail to mature,
the Member may be entitled to transfer up to $50,000
of income to his or her RRSP or a spousal RRSP without
paying tax, subject to their being contribution room
and provided that the Member satisfies the requirements
for an Accumulated Income Payment.
•
If you withdraw Contributions at any time prior to
the Nominee being a Qualified Student or terminate
your Plan at anytime prior to maturity, CESG, CLB
and ACES must be repaid to the government.
•
If you withdraw your Contributions from the Plan
prior to maturity you may lose some or all of any
income on your Contributions.
How Much Can I Contribute?

Annual contributions are restricted under the Income Tax
Act to $4,000 per Nominee and lifetime contributions are
restricted to $42,000 per Nominee. Each Nominee may
have more than one RESP - for example, one RESP set
up by a grandmother and another RESP set up by a father

13


- but the various contributions for the Nominee will be
added together to arrive at the annual and lifetime limits
(See "Tax Status" on page 35).
Are There any Exceptions to When
the RESP Must be Collapsed?

An RESP must be collapsed prior to December 31st of the
25th year following the year your Plan was entered into
(the 30th such year if it is a Specified Plan and the Member
has selected the Self-Determined Option). Any CESG, CLB
and/or ACES not paid out on this date will be remitted by
the Foundation to a Designated Educational Institution.
Any interest thereon, together with interest accrued on
Contributions will similarly be remitted to a Designated
Educational Institution.

CANADA EDUCATION SAVINGS GRANT

What is the Canada Education Savings Grant
(CESG) Program?

Introduced in 1998, the CESG is a grant from the
Government of Canada for a child's education after high
school. Every child up to and including age 17 is eligible
to receive the grant provided that the child is a Canadian
resident, has a valid SIN, is named as a beneficiary of an
RESP and the money has been put into the RESP.

What is the Amount of the Grant?

The amount of the grant for eligible children is dependent
upon your family net income and is calculated as follows:

Family income below $36,378*

The CESG adds 40% to your first $500 of annual
contributions and 20% of the next $1,500 in annual

contributions each year. The maximum annual grant will
be $500 per child.

Family income between $36,378* and $72,756*

The CESG adds 30% to your first $500 of annual
contributions and 20% of the next $1,500 in annual
contributions each year. The maximum annual grant will
be $450 per child.

Family income over $72,756*

The CESG adds 20% to the first $2,000 of annual
contributions each year. The maximum annual grant will
be $400 per child.

RESP contributions made in the year a Nominee becomes
16 or 17 years of age will only attract CESG if a minimum
of $2,000 in Contributions was made before the year in
which the Nominee turns 16 years of age, or if a minimum
of $100 of RESP Contributions was made in any four years
before the Nominee turns age 16.

The c__ulative maximum of all CESG is $7,200 per child.

Additional CESG Eligibility

Families with annual income below $72,756* are entitled
to additional grant on the first $500 they contribute to an
RESP each year. The additional 10% or 20% grant on the
first $500 of contributions is referred to as Additional
CESG. The $36,378* and $72,756* family income limits
refers to the "adjusted income" of an "eligible individual"
in respect of whom the Nominee is a "qualified dependant,"
terms defined for purposes of the child tax benefit provided
for in the Income Tax Act. To qualify for the Additional
CESG, the adjusted income used to determine the amount
of the child tax benefit available for January of the year in
which the contribution to the RESP is governed by the
stated income limits.

* This amount is updated by Human Resources and Social
Development Canada ("HRSDC") each year based on the
rate of inflation.
A "qualified dependant" is a child who:

•
is under 18 years of age; and
•
was not married to a person who claimed a spousal
tax deduction in respect of the child.
As described in the Income Tax Act, an "eligible
individual" generally is a parent who lives with the child
in Canada and principally fulfils the responsibility for the
child's care and upbringing. In addition, any child who is
eligible for an allowance under the Children's Special
Allowances Act will qualify for the additional 20% grant.

14


How do I Get the Grant?

To receive CESG you must complete the CESG
application form which accompanies your Application.
You must consent to the use and sharing of personal
information and the personal information of the Nominee
contained in the Application, otherwise HRSDC cannot
make payment of the CESG in respect of the RESP
Nominee. In order to be eligible for CESG you must open
and contribute to an RESP, your Nominee must have a
valid SIN and be a Canadian resident at the time each
Contribution is made but the Member need not be a
resident of Canada when Contributions to the RESP are
made.

If you qualify for Additional CESG, the primary
caregiver of the Child for whose benefit the Additional
CESG is payable must provide his or her SIN (or business
number in the case of a department, agency or institution)
to the Foundation, and designate your Plan to receive the
Additional CESG.

The Foundation will apply to HRSDC for the CESG on
your behalf. The grant is made payable to the Foundation,
which will deposit the CESG into your CESG account and
invest it on your behalf.

What if I Have Not Taken Advantage
of the CESG in Past Years?

Since January 1, 1998, your Nominee, if a resident of
Canada, has been accumulating grant contribution room
for each year of his or her life. This will continue up to and
including the year your child turns 17 years old, regardless
of whether your child is a beneficiary under an RESP.

If you do not contribute the maximum amount of
money that is eligible for CESG in any one year, any
unused CESG contribution room can be carried forward.
Contribution room for Additional CESG cannot be carried
forward. You may use your CESG carry-forward room at
any time, however, you can only contribute a maximum
of $4,000 per calendar year (the contribution limit under
the Income Tax Act) and receive a maximum grant of
$800 per year per eligible child (plus up to $100 of
Additional CESG based on family income).

For example, if your daughter was born in 1998 and
you do not make an RESP contribution for her until she is
four years old, your daughter will have accumulated
$10,000 worth of CESG contribution room by the end of
2002 (calculated as five calendar years times $2,000 per
year). In having a family income that qualifies you for
$400 per year of CESG, you could contribute $4,000 a
year for four years and receive a grant of $800 in each of
those years. That would bring your grant total up to
$3,200 for those four years.

The following chart demonstrates how your grant
contribution room accumulates:

2003 2004 2005 2006
Accumulated grant
contribution room
$8,000)* $6,000 $4,000 $2,000
Contributions made
this year (maximum)
$4,000)**$4,000 $4,000 $4,000
CESG grant available $800 $800 $800 $800
New grant
contribution room
$2,000 $2,000 $2,000 $2,000
Grant carry
forward balance
$6,000 $4,000 $2,000 $0

* $2,000 grant contribution room accumulates in each of the years 1999,
2000, 2001 and 2002. Therefore, $2,000 x 4 years = $8,000
** You will receive an $800 Canada Education Savings Grant in each of the
years you contribute $4,000 until your carry forward room is depleted.

If you do not have any CESG contribution carry-forward
room, only the first $2,000 of your RESP contribution will
attract the grant. Any over-contribution will not be carried
forward to the next year to attract the grant.

When planning your annual contributions, remember
that the CESG is not included in calculating the CRA
restrictions of an annual contribution limit of $4,000 and
the lifetime contribution limit of $42,000.

Other Canada Education Savings Grant Provisions

Upon any withdrawal of Principal that had been contributed
to an RESP after January 1, 1998 and upon which CESG
was paid, CESG ranging from 20% to 40% of the amount of
the withdrawal will be returned to the federal government.
Where the RESP includes Contributions from periods prior to
and after January 1, 1998, the withdrawal will be considered
to come first from Contributions after January 1, 1998.
The foregoing rules regarding withdrawal do not apply to a
transfer from one RESP to another.

Contributions cannot be withdrawn from existing
RESPs and recontributed to new RESPs to receive a grant.
Specifically, where a withdrawal of Principal that had been
contributed to the RESP prior to January 1, 1998 in excess
of $200 has been made, future Contributions made to any
RESP during the remainder of the year of withdrawal, or in
the following two years, in respect of the same Nominee,
will not be eligible for the CESG. The Nominee will also
not earn new CESG contribution room during this same
time frame.

If the Member has enrolled in the Scholarship Option,
the CESG and the interest earned on it will be paid to the

15


Nominee in increments commencing when the Nominee
becomes a Qualified Student after the Maturity Date.
The maximum amount of CESG that can be paid to any
Nominee is $7,200; if a Nominee receives more than
$7,200 in CESG payments, the Nominee is responsible for
payment of the excess to the federal government.

If the Self-Determined Option has been selected and
the Nominee thereunder does not become a Qualified SD
Student, CESG received under the Plan must be returned
to the government. The investment income on such
CESG is available for withdrawal by the Member as
described under "Tax Status of Member and Nominee".

The Trustee has entered into an agreement with Her
Majesty the Queen in Right of Canada, as represented by the
Minister of Human Resources and Social Development
(the "HRSDC Trustee Agreement") in order to facilitate
the availability of CESG payments and their administration
and payment. As contemplated by the HRSDC Trustee
Agreement, the Trustee has entered into an agreement with the
Foundation (the "CES Agency Agreement") appointing the
Foundation as the agent of the Trustee to perform the
administration functions under the HRSDC Trustee Agreement.
As a result of these arrangements, the first CESG payments
on behalf of Members were received in December, 1998.

CANADA LEARNING BOND

What is the Canada Learning Bond (CLB) Program?

The Government of Canada introduced the Canada Learning
Bond ("CLB") program to help children of modest-income
families start saving early for their child's education after
high school. The CLB is put directly into an RESP in
which the child is named as a beneficiary. For families
who qualify the CLB grant is $500 in the first year the
child is eligible and $100 for each subsequent year that
the family is eligible until the year that the child turns age

15. An additional $25 will be paid with the first $500 into
the RESP to help cover the cost of opening an RESP. The
total CLB available for a child could amount to $2,000.
To be Eligible for the CLB

Your eligibility for CLB is determined if:

•
Your child is born after December 31, 2003.
•
You are eligible to receive the Canada Child Tax Benefit
that includes the National Child Benefit Supplement.*
•
Your child has a SIN and is a Canadian resident.
Members themselves do not need to be a resident
whenever a CLB grant is paid.
* The supplement is generally for families with a net
annual income below $36,378.
How do I Apply for the CLB?

If you are eligible then in order to get the CLB, all you
need to do is:

•
Apply for a birth certificate and then a SIN for your child.
•
Apply to the CRA for the Canada Child Tax Benefit.
•
Open up a Plan.
•
Consent to the use and sharing of your personal
information and the personal information of the
Nominee contained in the CLB application.
The Foundation will apply to HRSDC for the CLB on
your behalf. Once approved the CLB will be deposited
into your Plan.

What Happens if I Don't Apply
for the CLB Right Away?

Your child is eligible for the CLB from birth. If a parent
does not apply for the CLB right away, the federal government
will still make payments for earlier years. The money will
be paid into an RESP once a parent requests the CLB. A
parent can apply for the CLB until the child turns 18. The
earlier a parent applies for the CLB, the sooner the grant
money will start to grow in an RESP.

Are There any Other CLB Provisions?

The CLB may be transferred into the child's RESP with the
authorization of the child's primary caregiver. If the CLB is
not transferred to the child's RESP by the time the child
reaches 18 years of age, the child may open an RESP in
any year before turning 21 to hold the CLB. If the child
turns 21 years of age, any CLB not transferred to an RESP
will be forfeited to the federal government. CLB entitlements
will be allocated to a specific child and therefore cannot
be shared within the Plans. The CLB will not count
towards RESP or Contribution limits. No CLB will be paid
on CLB amounts transferred to an RESP.

When Must CLB be Repaid?

If any of the following events occur, CLB must be repaid
to the Government of Canada:

•
If your Plan is terminated or its registration is revoked.
•
If the named child does not continue education after
high school.
•
If your Plan changes its original named child unless:
(i) the new Nominee had not attained 21 years of age
before the particular time and the Member is the
parent of both the old and the new Nominees, or
(ii) both Nominees were connected by blood
relationship or adoption to the Member and neither
had attained 21 years of age before the particular time.
16


•
If the named child does not become a Qualified
Student by the 25th year following the year the Plan
was entered into.
•
If an Educational a__istance Payment is made to an
individual who is not a Nominee.
•
If a transfer is made from the Heritage Plans to another
education savings plan that does not comply with the
Canada Education Savings Act or the Income Tax Act.
•
If Accumulated Income Payments are made or any
payments are made to a Designated Educational
Institution.
ALBERTA CENTENNIAL EDUCATION
SAVINGS (ACES) GRANT

What is the Alberta Centennial Education
Savings Plan Grant (ACES) Program?

The provincial government of Alberta has implemented
the Alberta Centennial Education Savings Plan Grant
("ACES") to encourage residents of Alberta to open an
RESP and begin saving for their child's post-secondary
education as early as possible.

How Does the Program Benefit Me?

If you are a resident of Alberta, the provincial government
will, upon application, pay a grant of $500 into an RESP
for every child born in Alberta on January 1, 2005 or later.
Additional grants of $100 will be paid into the RESPs of
eligible children when they turn age 8, 11 and 14 provid

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