11111111

1111

Required: In the space provided, indicate which option is the best. For the others, indicate the pros/cons. Point form only Stephanie, age 45. is a mother of one child, Emily, age 25. She is just starting to think about how she can effectively pass on her assets to her children. Currently, her will indicates that all of her assets will go to her estate. Her assets have the following fair market values: House: 350,000 (ACB = 250,000) Cottage: 1,200,000 ( ACB = 600,000) RRSP: 950,000 { ACB = 900,000) Non-reg.portfolio : 300,000 (ACB= 200,000) She will designate the house as her principal residence for tax purposes. She also has a term life insurance policy for $800,000 with her estate as the named beneciary. She has been told that she can minimize probate with a couple of small steps. She wants to do that as soon as possible, in the event that she should suffer an untimely death in near future. If her goal is to take minimize her exposure to probate, without triggering tax implications today, which of the following steps should she take first? [i.e. which is most "effective" in meeting her goals"?) :3} Assume joint ownership of the house with Emily. b] Gift the RRSP to Emily today c) Designate Emily as the named beneficiary on the life insurance policy. d) Gift the cottage to Emily today