Capitalizing on a Proactive Estate Freeze

An estate freeze is one of the most complicated areas of tax planning. Numerous matters relating to tax, corporate law and matrimonial legalities may contribute to the circumstances. Accordingly, if you are thinking about conducting an estate freeze, you should consult an experienced estate freeze lawyer in Toronto.

Estate Freeze Lawyer, Toronto

Duensing Law advises business owners and individuals on estate freezes for the transfer of future growth to the next generation, minimizing probate fees and income tax upon death. Additionally, our probate administration expenses in Toronto will include a detailed plan for wealth preservation. As your advisors, we will closely work with your accountant to organize your estate efficiently, resulting in an estate freeze without adverse tax implications.

What does an Estate Freeze include?

Under the Canadian Income Tax Act, there are three different ways an estate freeze is implemented:

• Share capital reorganization
• Corporate reorganization
• Trust freeze

The purpose of an estate freeze is to transfer the future increase in value of the assets that the initiator owns to their children, grandchildren, or in the case of a business, key employees. In Ontario, the initiator (also called the Freezor), retains the current value of their shares and defers the income taxes that have been placed on their capital gain at the time of the disposition. Additionally, the main goal of an estate freeze is to avoid capital gains as inflation can radically increase an individual’s estate tax burden upon death.

Prior to implementing an estate freeze, there are a number of factors to consider that should be closely evaluated with our trusted estate law firm. They include:

Begin your estate planning and increase your chances of a successful estate freeze by setting up a complimentary consultation today.