Ricky is reviewing his estate plan. He and his wife, Anita, have the following assets registered in joint title with the right of survivorship:

Personal residence FMV $$380,000$ and ACB $$100,000$

$$ Segregated funds $($non$-$registered$)$ valued at $$100,000.$

He also has the following assets registered in his own name:

$$ RRSP valued at $$100,000($son is beneficiary$)$

$$ RRIF valued at $$200,000($estate is beneficiary$)$Universal life insurance policy with a face value of $$400,000($estate is beneficiary$)$

$$ Cottage FMV $$250,000,$ ACB $$80,000$Bond portfolio $($non$-$registered$)$ FMV $$60,000,$ ACB $$55,000$Segregated funds valued at $$30,000($Anita is beneficiary$)$

Anita is the residual beneficiary of Ricky's estate and opts to maximize all rollover opportunities. Assume a $40\%$ tax rate on Ricky's final tax return.

Case B Questions $(20$ marks$)$

$1.$ Use$/$ Extend the table below to make a list of assets subject to EAT. Calculate the estate administration tax $($EAT$)$ payable on Ricky$$s estate, assuming he lives in Ontario. $(5$ marks$)$

Asset $ subject to EAT

$2.$ Now, calculate the income taxes owing on Ricky$$s estate at death. Show all assets included and calculations. $(2$ marks$)$

$3.$ After Ricky$$s estate has been wound down and taxes paid, list the assets Anita will receive. What is the net value of Anita$$s inheritance? $(7$ marks$)$

$4.$ What steps $($with respect to specific assets$)$ can, and should Ricky take while living to reduce EAT calculated in question one above? Address liquidity issues for the estate, if any. $(4$ marks$)$

$5.$ What can, and should Ricky do to reduce his income tax bill at death? Any implications? $(2$ marks$)$