Generally, where an individual becomes "a new beneficiary" in place of a "former beneficiary," we treat the contributions for the former beneficiary as if they had been made for the new beneficiary on the date they were originally made. If the new beneficiary already has an RESP, this may create an excess contribution.

An exception to the general rule applies in certain limited situations. The exception ensures that the contribution history of the former beneficiary is not added to the contribution history of the new beneficiary in the determination of whether the new beneficiary's lifetime contribution limit has been exceeded. These situations are as follows:

• the new beneficiary is under 21 years of age and the parent of the new beneficiary was a parent of the former beneficiary;
• both beneficiaries are connected by a blood relationship or adoption to the original subscriber under the RESP and both beneficiaries are under 21 years of age.