Do you own assets that are growing in value, such as shares in a
privately held company, a portfolio of investments or land? If so,
you may be able to arrange your affairs so as to minimize income
tax on any future gain in the value of those assets, save
provincial probate fees on your death, and plan for the orderly
succession of your wealth into the hands of the next
generation.
These are some of the objectives that lead people to consider an
estate freeze.
What is an estate freeze?
Simply put, an estate freeze is a transaction which limits, in
whole or in part, the growth in the value of assets ("original
assets") by replacing them with assets that have a fixed value
("frozen assets"). Future growth in the value of the
original assets then generally accrues to the benefit of other
persons, often children and grandchildren of the individual
carrying out the estate freeze (the "freezor"). The
transaction is also often implemented in a way that will permit
