Estate Freeze
An estate freeze is a tool that can be used to restructure the ownership of your corporation by freezing the value of your assets at a particular date, and transferring post-freeze growth to the next generation or beneficiaries. By fixing the value of your shares or other assets, and transferring future growth to the next generation, it is possible to calculate the amount of taxes that will be owed by your beneficiaries when they eventually take over the estate, this in turn makes estate planning easier and more efficient.
Some of the possible benefits of an estate freeze include:
- Tax minimization and deferral
- Ability to multiply lifetime capital gains exemption
- Income splitting
- Aid in business succession
- Probate fee reduction
Click here for full estate freeze article.