Michael would like to divide his estate equally between his son and daughter. In order to avoid probate, he has named his the direct beneficiary of his RRSP and TFSA, and his daughter the direct beneficiary of his life insurance. Advise Michael as to the possible consequences of these designations.

a. It may result in the uneven distribution of after-tax values.

b. These assets are still subject to probate.

c. His son and daughter will receive the pre-tax value of the assets and they must pay taxes at their marginal rate.

d. A life insurance beneficiary must be the estate.