Upon Jasons death, he owns $600,000 of RRSP from TD Bank, plus $300,000 in another RRSP from the Bank of Nova Scotia. He has three adult daughters: Amy, Brenda, and Cindy. Amy lives with Jason, is physically infirmed and does not have the ability to earn any income. Brenda and Cindy both have stable jobs and earn sufficient salaries for a decent life style. Jason wishes to take care of Amys financial needs after he dies, but also be fair to Brenda and Cindy hoping the two sisters can help Amy after he dies. Assume his combined federal and provincial tax rate is 46%.

He designates Amy as his beneficiary of his RRSP with Bank of Nova Scotia, and name Brenda and Cindy as beneficiaries under his Will to equally spit the RRSP with TD Bank.

Required:

What are the legal and tax impacts for Jason, Amy, Brenda and Cindy, and the amounts each of the three adult children will receive?

What if Amy is NOT physically infirmed, and earns a high income? Would your answer to the above questions be the same or different?

Briefly explain the issues and challenges (tax and non-tax) due to this estate plan for the family.

Show your analysis and calculations. Ignore the probate fees and personal tax credits.