Donald and Barb Ford are husband and wife living in Ontario. They have one son, aged 27. Their assets included the following:

• House ACB $125,000, FMV $450,000. Donald and Barb are joint tenants with right of survivorship.
• Cottage ACB $60,000, FMV $200,000. Donald and Barb are joint tenants with right of survivorship.
• $150,000 life insurance policy on Barbs life. Their 27-year old son is beneficiary.
• Barbs $120,000 RRSP. There is no beneficiary.
• Donald's $360,000 RRSP. Barb is named as beneficiary.

Donald and Barb are reviewing their estate plan as they have not done so since their son was little. They want to minimize the amount of estate administration tax and tax on their estate. What three recommendations would you give to them to reduce EAT and taxes on their estate? Include the benefits and risks for each recommendation. (9 marks)