ZLC Financial’s 2025 Estate Planning Seminar 30 Jan 8:43 AM (2 months ago)
ZLC Financial’s Estate Planning Seminar: Key Insights & Takeaways
On January 29, 2025, ZLC Financial hosted its annual Estate Planning Seminar at the Terminal City Club in Vancouver. The event provided attendees with valuable insights into the latest developments in estate planning, with a focus on new tax legislation and strategies for optimizing asset preservation.
Renowned expert Dr. Lee Hausner delivered the keynote address, sharing her expertise on navigating the complexities of family business succession. She emphasized the importance of strategic planning and open communication to ensure a seamless transition across generations.
Dr. Michael Moody, from Indiana University’s Lilly Family School of Philanthropy, explored the evolving landscape of philanthropy. He highlighted how younger generations are reshaping charitable giving with innovative approaches and a strong focus on measurable impact. While their core values align with those of previous wealth creators, their execution and methods for assessing impact have evolved significantly.
In the second half of the morning, Asif Abdullah, Partner at Thorsteinssons, provided his highly anticipated update on recent tax legislation. He offered valuable insights into the gaps between Canada’s Income Tax Act and the CRA’s administration of proposed changes, equipping attendees with a deeper understanding of the implications for estate planning.
Rounding out the day, Violet Smith and Aeronn Zlotnik, senior advisors at ZLC, shared their approach to comprehensive financial planning. They discussed the added value of working with ZLC and how their expertise enhances financial plans for both clients and partners.
Looking Ahead
ZLC Financial extends its gratitude to all speakers and participants for contributing to the success of this year’s seminar. The firm remains committed to providing valuable resources and insights to help clients and professionals navigate the evolving landscape of estate planning.
For access to seminar materials or to learn more about ZLC Financial’s estate planning services, please contact info@zlc.net.
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ZLC Announces Howard Blank as Donor Ambassador 15 Jan 7:46 AM (3 months ago)
ZLC Financial is excited to announce that Howard Blank has joined our team as the new Donor Ambassador. With over 25 years of experience in the philanthropic and charitable sector, Howard has played a pivotal role in raising more than $1 billion for vital organizations across North America.
In his new role, Howard will focus on cultivating meaningful relationships with donors and connecting with them with ZLC Financial’s advisors to help them transform their philanthropic motions into a legacy. Charitable giving is a core pillar of ZLC Financial, and our advisors are experts in helping clients realize their charitable giving objectives through tailored solutions that can maximize the impact of their gifts.
“We are very pleased to welcome Howard to our team,” said Michelle Richier, President of ZLC Financial. “Howard is a leader in the community, and his extensive charitable work aligns perfectly with the vision, mission, and values of our firm.”
Howard also shared his enthusiasm about joining ZLC Financial, saying, “I am thrilled to foster new relationships between Canadian donors and the incredible team at ZLC Financial. Garry, Michelle, and their team are experts at enabling clients with giving strategies that maximize impact and providing exceptional advice on estate planning, and integrated financial planning solutions.”
Throughout his distinguished career, Howard has been recognized with numerous honors, including the Sovereign’s Medal for Volunteerism, the BC Community Achievement Medal, the Queen’s Jubilee Medal, and the Paul Harris Fellowship. Beyond his professional accomplishments, Howard is deeply involved in the community, serving on various boards and organizations. He is an Ambassador for the Cerebral Palsy Association of BC, Past President of Variety BC, a board member of Zajac Ranch, Vice President of the BC Entertainment Hall of Fame, and an advisor to The MOB Museum—The National Museum of Organized Crime and Law Enforcement.
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ZLC Welcomes Advisors as New Shareholders 27 Nov 2024 1:23 PM (4 months ago)
We are thrilled to announce that ZLC Financial has welcomed several of our talented advisors (Aeronn Zlotnik, Michael Buytels, Ben Lee, Linda Metcalfe, Philip Levinson, Farzin Remtulla, Bruce Berger, Jon McKinney, Brent Davis, Charlie Lamb) as new shareholders. This marks an exciting time for our firm and reinforces our commitment to growth, innovation, excellence, and outstanding client service.
Together with CEO Garry Zlotnik and President Michelle Richier, ZLC’s new principals will play a vital role in driving our strategic vision and fostering growth through the strength of our partnership. The collaboration between ZLC, its new principals, and all of our Associates and staff will ensure that ZLC remains not only a trusted advisor but also a firm rooted in innovation and sustainability for generations to come.
What This Means for Our Clients
This evolution strengthens ZLC’s legacy serving the Greater Vancouver community of leaders and business owners and positions us to deliver even greater value to our clients. By empowering advisors as partners in our success, we are further aligning our mission with the long-term interests of the individuals, families, and businesses we serve.
Please join us in congratulating our new principals!
We look forward to this next chapter and the exciting opportunities ahead for our firm, all of our advisors, and our valued clients.
At ZLC Financial, our strength lies in our people. Thank you for being part of our journey.
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Maximize Your Charitable Impact 1 Oct 2024 9:36 AM (6 months ago)
Are you interested in maximizing your charitable impact? Here are some lesser-known donation strategies for Canadians.
Explore innovative and tax-efficient ways to maximize your charitable contributions in Canada. Beyond the common cash donations, discover how gifts of property, publicly traded securities, and life insurance policies can offer significant tax benefits. Learn about the strategic advantages of donating mining flow-through shares and private company shares, and how donor-advised funds can enhance your giving over time. Stay informed on the latest tax limitations, including the effects of Budget 2024 and changes to the Alternative Minimum Tax. Whether you’re a seasoned philanthropist or new to charitable giving, this guide provides essential insights to optimize your generosity while navigating complex tax regulations.
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Don’t Wait. The Benefits of Transforming Your Term Life into Permanent Protection RIGHT NOW… 29 May 2024 10:34 AM (10 months ago)
Life is full of uncertainties, but your financial security shouldn’t be one of them. You’re now in a place to consider your long-term financial goals and investments and Permanent Life Insurance should not be overlooked in your plans.
Here’s why making the switch could be one of the smartest moves you’ll ever make:
Cash Value Growth: You can convert your term life insurance policy into permanent life insurance and enjoy the same coverage benefits while the cash value of the policy accumulates, tax deferred. Whether you need funds for emergencies, educational expenses, or retirement supplement, the cash value component offers flexibility and peace of mind.
Avoid Underwriting: If your term life insurance policy is approaching your expiry date, you may be eligible to convert your term policy to permanent coverage while avoiding the underwriting policy altogether!
Lifetime Protection: Unlike term life insurance, which provides coverage for a specific period, permanent life insurance offers protection for your entire lifetime. No matter what twists and turns life may bring, you can rest assured knowing your loved ones will be financially safeguarded.
Stable Premiums: With most policies, converting to permanent life insurance locks in your premiums at a stable rate, protecting you from potential increases as you age or if your health status changes. This predictability allows for better financial planning and eliminates the uncertainty of future premium hikes.
Tax-Free Death Benefit: Your beneficiaries get the money from the death benefit by providing tax-advantaged wealth transfer options. Beneficiaries can use this money in any way they want.
Ready to take the next step toward securing your financial future? Converting your term life insurance into permanent coverage is easier than you think.
Contact your advisor today and we will walk you through your conversion options and start building cash value with the same level of protection!
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Do Your Clients – and Their Children- Have an Estate Liquidity Plan? 23 May 2024 10:02 AM (10 months ago)
In a recent development, the Canadian tax planning community received reassuring news from the CRA regarding post-mortem “pipeline planning.” Despite revisions to the general anti-avoidance rule (GAAR), the CRA maintains its position on the planning technique, offering stability to tax planners. However, estate planning is still complex and requires consideration of factors beyond tax planning, with estate liquidity planning standing out as a critical one.
Regardless of the post-mortem strategy undertaken to avoid double taxation on assets, estate liquidity is necessary to cover at least one remaining layer of tax.
Read more about how to effectively protect your wealth in this month’s issue of CPABC In Focus Magazine, where ZLC Advisor, Farzin Remtulla, discusses the importance of post-mortem planning and shares his perspective on various tax and liquidity planning techniques.
View his full article here!
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Life is predictably unpredictable. Plan for unpredictability with critical illness and disability insurance. 7 May 2024 12:50 PM (11 months ago)
In today’s fast-paced world, unforeseen health challenges can disrupt our lives and jeopardize our financial stability. Yet very few people consider the financial repercussions of recovering from a serious accident or illness. Though no one likes to believe that a serious illness could happen to them, the truth is that it’s fairly common. Did you know that a majority of working Canadians (68%) have encountered instances of taking time off work due to disability1? Additionally, chronic diseases, which are on the rise in Canada2, pose significant concerns for individuals and families alike.
However, it’s not all doom and gloom. The good news is that you are more than likely to survive a major health event, and disability isn’t necessarily permanent. However, the financial implications of such situations can be burdensome.
Thinking about these two questions can help guide you in the protection you may need for your family and financial future.
What would happen if you were no longer able to work?
Could you cope with the loss of earnings?
Here’s what you can obtain now, to get peace of mind from the unpredictability of a health-related disruption to your daily life.
Critical Illness Insurance – If faced with a medical crisis, Critical Illness Insurance provides a lump sum cash benefit upon diagnosis.
Disability Insurance – Disability Insurance pays a monthly tax-free benefit to help cover loss of income for those under age 65.
Not everyone’s needs are the same when it comes to coverage, and we would be happy to chat with you about the right coverage for you. Connect with your advisor to set up a time.
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Here We Go Again With Prescription Drugs… 18 Apr 2024 8:15 AM (12 months ago)
| Dan Eisner, Advisor, ZLC Employee Benefits Solutions |
Almost 15 years ago, an amazing phenomenon occurred in the employee benefits industry and employee benefits inflation slowed dramatically. This was directly related to reduced drug costs due to what we now often refer to as the “Patent Cliff”. Over about a 5-year period, approximately 75% of the drugs in Canada, based on dollars spent, lost their patent protection, and thus generic pharmaceutical companies were able to start producing and selling these drugs at significantly lower prices. As most prescription drugs are reimbursed through private, employer-sponsored employee benefits plans, the “Patent Cliff” helped generate significant and sustainable savings. Employee benefits plan sponsors enjoyed a reduction in annual employee benefits inflation rates, down to as low as 2% per year, as compared to an average of approximately 6% in the years prior.
So, what does that have to do with today? A similar phenomenon is upon us in the employee benefits industry, and we hope to see reduced inflation rates as a result. This time around though, it is high-cost specialty drugs that are losing their patent protection, and many employee benefits plan sponsors may be looking forward to the same kind of financial relief from “Biosimilars” as we saw from Generics. Specialty drugs currently account for less than 2% of submitted drug “claims” but account for over 30% of drug “spend” in Canada, and these costs are increasing. These types of drugs are significant from a cost perspective, typically over $10,000 per year for recurring conditions, so any financial savings would be greatly appreciated by group benefits plan sponsors.
However, biosimilar drugs are not necessarily the same as generic drugs. Biosimilar drugs are still costly to produce even when the pharmaceutical companies do not have to spend the significant research dollars to develop these drugs. Therefore, list prices for Biosimilars have generally been 20% to 50% lower than prices for the related original specialty drug over the last couple of years, whereas the list prices for generic drugs can now be as much as 80% lower. Many in the benefits industry are hoping that further savings might be realized with more competition between pharmaceutical companies in this space. To date, Biosimilars have become available for many of the more popular and costly biologic drugs, including, but not limited to, Remicade, Enbrel, Neupogen, Lantus, Neulasta, and Humira.
However, employee benefits plan sponsors have not immediately achieved these potential savings. Biosimilar drugs were not always considered by physicians to be interchangeable with their brand name comparators. As a result, some physicians did not want to disrupt proven therapies and kept patients on the higher cost drugs. Even though Biosimilars have been available for a number of years, many plan sponsors have not seen the full financial savings that we saw back around the Patent Cliff.
What helped a couple of years ago was a decision made by the B.C. government that took a new (and bold) direction and changed the provincial PharmaCare drug plan to require “mandatory switching” to specific Biosimilars – all patients would need to switch to the lower cost Biosimilar in order to qualify for government funding. Since that time insurers have mostly followed the B.C. PharmaCare protocols, which have extended the savings to employee benefits plan sponsors. The results for B.C. for 2019 and 2020 indicated that, because of this policy change, there was an 80-90% switching ratio to Biosimilars, which generated a 33% overall cost decrease for the specialty drugs category in B.C. versus an 18% cost increase for the rest of Canada over the same time period. Now, Alberta, Ontario, New Brunswick and Quebec have announced similar programs.
The good news is that Biosimilar drugs will now provide some level of cost savings to employee benefits plan sponsors, much in the same way that generic drugs did almost 15 years ago. Unfortunately, the savings have not come as quickly nor as consistently. While generic drugs now often cost 80% less than brand name drugs, Biosimilars typically only offer 20-50% savings. Group benefits plan sponsors are certainly not complaining though as this new phenomenon might bend the annual inflation curve by 1-2% for the next couple of years.
We would be pleased to discuss your specific situation with you to identify the best strategy for your employee benefits plans. Should you have any questions on the above, please do not hesitate to contact any member of our team.
ZLC Employee Benefits Solutions is one of the fastest growing advisors for employee benefits and group retirement programs in Vancouver and we are fortunate to have the best people, resources, and clients. We provide value by leveraging one of the most skilled benefits teams – collectively over 450 years of experience within our team of 21 employee benefits specialists. We have been working with businesses ranging from 3 to over 75,000 plan members for almost 40 years.
Click here to check out Dan’s latest podcast!
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Time to Get Rid of Some Pharmacy Controls in Employee Benefits Plans 5 Mar 2024 10:23 AM (last year)
| Dan Eisner, Advisor, ZLC Employee Benefits Solutions |
Over the years there have been many benefits plan provisions added to Extended Health plans to help control costs. Many of them have focused on prescription drugs, and, in particular, around controlling pharmacy fees. Based on changes in the employee benefits market, it may be time to rethink these provisions and likely get rid of them.
A big reason to reassess these strategies is based on the composition of an average drug claim and how these provisions impact purchasing behaviour. For example, an average drug claim about 10 years ago was approximately $40 and, of that amount, the pharmacy dispensing fee on average was approximately 20% of the total cost (about $7 to $8). Today the average drug claim is closer to $80 and the average pharmacy dispensing fee is $10 to $11, or approximately 12% of the total cost. As a result, plan design provisions focused on reducing or eliminating the cost of the dispensing fee have become far less effective.
Let’s discuss a couple of the more common plan design provisions related to controlling pharmacy fees and what has happened to them.
Dispensing Fee Maximums – This concept was simply to limit the amount the pharmacist could charge as their dispensing fee. Unfortunately, the pharmacy would never actually limit what they charge but would instead charge what they wanted to, and the plan member would pick up the difference. As little as 10 years ago, pharmacy dispensing fees ranged broadly from under $4 to over $15, so it made sense to try to steer employees to pharmacies with lower dispensing fees. However, in the current market, the vast majority of pharmacies are all packed in between approximately $10 and $11 for their dispensing fees (Costco being an outlier at $4 to $5) and these old dispensing fee maximums, set many years ago, are often set between $5 and $7. At the end of the day, there really is no incentive for employees to change their behaviours with this design as the results are almost always the same.
Dispensing Fee Deductibles – The focus here is to make the employee pay for the dispensing fee and thus motivate them to get their prescription drugs filled at the lower cost pharmacy. As noted above, the vast majority of pharmacies are priced pretty much the same, so employees have limited options to shop around and save some money. Consequently, this plan design provision has simply become an annoyance to employees with a somewhat arbitrary charge paid by them.
The bigger opportunities are now around managing the core ingredients costs in prescription drugs, so let’s take a look at a couple of them.
Mandatory Generic Substitution – This concept was quite radical 10 to 15 years ago and that provision in the plan design is now almost universally accepted as the “market norm”, except, for example, some historical union plans that are difficult to change. The mandatory generic provision alone has helped drive down drug plan costs by up to 80% for the most common generic drugs. However, there is not likely to be any further cost savings in this area except as fewer traditional drugs are expected to come off patent protection.
Biosimilar Replacement – Similar in concept to mandatory generic substitution, the idea is to drive the use of “biosimilar” versions of high-cost specialty drugs, which are developed after the original drug loses patent protection. These provisions have become much more common in Canada, largely driven by provincial government policy instead of proactive plan sponsor actions. Most insurers in Canada are following the lead of the provinces and requiring substitution for high-cost biologic drugs where a biosimilar drug is available. Without plan sponsors needing to make any plan design changes, these provisions will continue to drive savings of approximately 30% to 40% as more of these high-cost drugs lose patent protection.
Mark-Up Maximums – One last area for plan sponsors to consider exploring is where you limit how much the pharmacy can mark up the ingredient costs of the drug for retail sale. This provision is relatively uncommon in the market right now for a couple of reasons. First and foremost, there is little transparency in this area of the market as the mark-ups charged are never disclosed to employees or plan sponsors. Secondly, insurers have been reluctant to disrupt their relationship with the pharmacy market with this type of plan design provision, except for the largest of plan sponsors. As well, some insurers have released websites to help employees see the relative cost of the same drug at different pharmacies, which could help show the differences in drug costs overall, but this does not really drive the costs down unless employees are motivated to save money by coinsurance provisions. Perhaps it is worth exploring further if it fits your unique circumstances.
Prescription drugs will continue to be the biggest portion of an Extended Health benefits plan claims costs, often comprising 60-70%. Drugs are arguably going to be subject to the highest level of annual inflation going forward as more high-cost drugs enter the market. This part of the broader employee benefits program is also one of the most valued by employees. Put that all together and we have a large and increasing cost that is difficult to manage when plan controls adversely impact employees. That said, I think we can agree that the old-style pharmacy controls just do not work effectively anymore, and we need to focus on new and creative techniques.
We would be pleased to discuss your specific situation with you to identify the best strategy for your employee benefits plans. Should you have any questions on the above, please do not hesitate to contact any member of our team.
ZLC Employee Benefits Solutions is one of the fastest growing advisors for employee benefits and group retirement programs in Vancouver and we are fortunate to have the best people, resources, and clients. We provide value by leveraging one of the most skilled benefits teams – collectively over 450 years of experience within our team of 21 employee benefits specialists. We have been working with businesses ranging from 3 to over 75,000 plan members for almost 40 years.
Click here to check out Dan’s latest podcast!
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Highlights from Estate Planning Seminar – 2024 9 Feb 2024 10:39 AM (last year)
We had the pleasure of hosting our Estate Planning Seminar at the Terminal City Club on February 8th, 2024. It was wonderful to see our professional partners in attendance, eager to get updated on tax changes and get practical advice on estate planning strategies for their clients. Our lineup of speakers delivered engaging sessions, sharing their expertise and insights throughout the morning.
Here’s what we covered:
Session 1
The seminar began with Dr. Tom Deans, author of “Willing Wisdom”, delivering his session about “The Great Canadian Wealth Transition: Opportunities and Threats.” Dr. Deans shared practical insights on transferring wealth while preserving assets and family relationships. He emphasized the changing dynamics of family structures and the challenges faced by financial professionals in facilitating family discussions and implementing formal governance. Dr. Deans introduced his book, which offers guidance on thoughtful planning and communication to ensure a smooth transition and meaningful legacy.
Session 2
Ian Humphries from Thorsteinssons presented the 2024 Tax Update, giving us the latest CRA changes. He updated us about the changes to the alternative minimum tax, intergenerational business transfers, and real estate updates. Attendees gained practical strategies to navigate these changes effectively and advise their clients..
Session 3
Andrew MacKenzie, Director at Blair Mackay Mynett Valuations, took the floor with his session titled “Business Valuations: Assessing Approaches.” He shed light on the importance of business valuation and the reasons for obtaining a valuation report, covering the various methods. Most importantly, Andrew covered some of the pitfalls of the three approaches when exercised independently and the importance of engaging a chartered business valuator.
Session 4
The seminar concluded with an advisor roundtable led by Garry Zlotnik, CEO of ZLC Financial, joined by ZLC advisors Mike Buytels, Aeronn Zlotnik, and Farzin Remtulla. Together, they discussed “Efficient Strategies for Incorporating Liquidity into Estate Plans,” providing attendees examples through case studies.
Thank you to our speakers and attendees, and we hope to see you all next year! If anyone would like a copy of the presentations, please email us at info@zlc.net
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