1. For the 2023/2024 school year, your  client, Eleanor, is returning to school for the 2023/2024 academic year to complete her four-year business degree. The academic year includes 32 weeks of study. She is 28 years of age and a single mother with a 4-year-old child. She expects that her family income will be less than the clawback threshold for a family of 2. Eleanor lives in a province where Canada Student Loans are available alongside provincial or territorial student financial assistance. Her assessed need for purposes of the Canada Student Loans Program is $12,000.

For students from low-income families, the Canada Student Grant is $4,200 for an 8-month, academic year. The Canada Student Grant for a dependent child is $2,240 for an 8-month, academic year. For a full-time student, the Canada Student Grant Loan is 60% of assessed need up to a maximum of $300 per week of study.

What amount of support can Eleanor expect for the academic year from the Canada Student Grants Program and the Canada Student Loans Program?

2. For the 2023/2024 school year, your client, Rebecca Rebby, a mother of two children under 12 years of age, is enrolled in a full-time, two-year program at Mount College, a designated post-secondary institution. Each academic year, she will be attending college for 8 months from September to April. She has an assessed need of $5,000 and qualifies for the Grant for Students from Low-Income Families.

For students from low-income families, the Canada Student Grant is $4,200 for an 8-month, academic year. The Canada Student Grant for a dependent child is $2,240 for an 8-month, academic year. For a full-time student, the Canada Student Grant Loan is 60% of assessed need up to a maximum of $300 per week of study.

What amount of Canada Student Grants should Rebecca receive?

3. Each of the following students is the beneficiary of an RESP.

Who would not qualify for educational assistance payments?

4. Your client, Daniel Soma, who is 17 years of age is the beneficiary of an RESP with funds of $10,000. He is enrolled as a part-time student in a specified educational program at Confederation College.

What are the consequences of Daniel enrolling as a student in a specified educational program?

1. Daniel is eligible to receive at most $4,500 of Education Assistance Payments (EAPs) for each 13-week semester.

2. Daniel is eligible to receive at least $4,000 of EAPs for each 13-week semester.

3. Daniel is eligible to receive EAPs as long as he spends at least 12 hours per month on courses.

4. Daniel is eligible to receive EAPs until he reaches 25 years of age.

5. In March 2021, your client, Michael Jackson, made an LLP withdrawal of $6,000 to finance his college education. In March 2022, he completed his studies. In April 2022, he made a designated LLP repayment of $300. He wants to avoid any income inclusion.

For 2023, what is Michael's required repayment?

6. Your client, Veronica Riverdale, plans to quit her job and return to college full-time for 36 months to obtain a certificate in personal financial planning. She has $38,000 in her RRSP. She wants to be able to maintain her standard of living while she is going to school. Veronica is not disabled.

What are the consequences of her using the Lifelong Learning Plan (LLP)?

1. The maximum amount that Veronica could withdraw from her RRSP under the LLP in any one year is $5,000.

2. Veronica does not have to use the proceeds of a qualifying LLP withdrawal to pay for her tuition fees.

3. Veronica could go to school part-time and work part-time, and still make a qualifying LLP withdrawal.

4. The maximum amount that Veronica could withdraw under the LLP is $20,000. 

7. The anti-avoidance rules prevent certain abuses in investment activities with registered plans.

Who has realized an exploitative advantage?

1. Angelica, who had $5,000 of Government of Ontario bonds in a non-registered account and $5,000 of common shares of Bell Canada Enterprises in an RRSP account, swapped the two investments.

2. Raymond used the funds in his self-directed RRSP to purchase shares in a specified corporation controlled by a promoter, who retained 10% of the funds and paid the remaining amount to Raymond through an offshore account.

3. Morrow purchased two types of securities in tandem, one is held inside his RRSP and one outside, with the total investment return paid proportionately to the securities held inside and outside his RRSP.

4. Karen, who owns 50,000 thinly traded shares that have a bid price of 10¢, but an ask price of 30¢, swapped the shares from her non-registered account to her RRSP for cash of $5,000 and then swapped the shares from her RRSP to her nonregistered account for cash of $15,000.

8. Your client, Jan John, applied for a 15-year reverse annuity mortgage many years ago, and he has enjoyed the benefits of his decision for the last 13 years. Now, he is 80 years of age and still in perfect health. Jan wants to discharge the mortgage.

How can Jan discharge the mortgage?

9. Martin Bleb is 67 years of age.

Which of the following are eligible pension income?

1. Withdrawals from Martin's RRSP

2. Payments from Martin's RRIF

3. Annuity payments from Martin's unregistered annuity

4. Annuity payments from Martin's DPSP

10. Last year, Stanley Patterson was 58 years of age and married to Wendy who was 56 years of age. Stanley's only income was a retirement pension of $80,000 per year. Wendy's only income was $20,000 per year from a part-time job.

What should Stanley and Wendy consider in managing their income taxes?