In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, writer, talks with Jonah Mayles, Partner, Tax and Estate Planning at Sterling Park Financial. Jonah Mayles shares his wisdom derived in the field of tax law as well as insurance, and the often overlooked topic of insurance tracking shares in reference to estate planning.
Episode Highlights:
● 01:16 – Jonah Mayles explains what he does for a living.
● 02:14 – What is the concept of insurance tracking shares?
● 03:11 – What are the benefits of insurance tracking shares?
● 11:00 – How does the tax implication math happen upon death?
● 13:10 – Can beneficiary children buy shares directly from the estate?
● 14:07 – They discuss how taxes will be affected by COVID-19.
● 15:00 – What does the CRA speak to in reference to insurance tracking shares?
● 16:32 – Has Jonah seen financial arrangements where clients have borrowed from the policy as well?
● 19:17 – Jonah Mayles shares various use cases that solve several customer dynamics.
● 22:36 – The two types of lawyers that will always be busy: family lawyers and estate litigators.
3 Key Points
1. The cash surrender value of the policy contributes to the value of the fair market value of your shares.
2. We are headed towards the biggest wealth transfer in history with the Baby Boomer generation dying off.
3. Insurance is not only great for the client, but the government also gets to receive their money way faster.
Tweetable Quotes:
● “What I do at Sterling Park, my partners are all insurance guys, been in insurance their entire careers, whereas what I do is the tax and estate planning that goes into the insurance plans that we implement for our clients.” – Jonah Mayles
● “Insurance tracking shares is essentially a class of tracking shares that is created for a corporation that is going to acquire a whole life insurance policy.” – Jonah Mayles
● (Insurance tracking shares) “What it does is it tracks the value of either the cash surrender value of the policy or the death benefit, or both.” – Jonah Mayles
Resources Mentioned:
● Facebook – Jason Pereira’s Facebook
● LinkedIn – Jason Pereira’s LinkedIn
● FintechImpact.co – Website for Fintech Impact
● jasonpereira.ca – Website
● Linkedin – Jonah Mayles
● SterlingParkGrp.com – Website for Sterling Park Financial Group
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