Coverdell / Education Savings Account (ESA)

[mchuchra]

I have not been able to find any info on this board to describe the US based education savings account known as "Coverdell" account or ESA (also known as an Education Savings Account). These seem to be less popular than 529 plans. We are a family that previously lived in the United States and opened an ESA many years ago on behalf of their child, then subsequently moved to Canada and kept the ESA opened. The named beneficiary on that ESA is now an 18 year old Canadian resident who will be attending an Ontario University this coming September. From a US perspective, ESAs can be used to pay for qualified university expenses (like tuition and room/board) and withdrawn tax free (much like a Roth IRA). Are there any Canadian tax implications? If so, what is the most tax efficient way to withdraw those ESA/Coverdell funds to pay for Canadian university expenses for a Canadian resident?

Thanks!