ARTICLE · 20 MARCH 2020

Refreeze Your Business

Minden Gross LLP

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In the November 2019 TaxLetter issue, I discussed how estate freezes were still a good planning tool for family-owned businesses.

CanadaTax

Samantha Prasad

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In the November 2019 TaxLetter issue, I discussed how estate freezes were still a good planning tool for family-owned businesses. One discussion point I did not mention was that estate freezes are also a good strategy if your business had gone doXO in value, or is currently experiencing a dip since you can freeze your interest in the operating business ("Opco") at a lower value thus creating a lower tax bill on your death. But what if your business is in a low swing right now, but you've already implemented an estate freeze years ago at a time when values were higher? So on paper, your freeze value in Opco is worth more than the entire value of Opco. The answer? Refreeze.

What is a Refreeze?

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