What is an estate freeze and how does it work?

An estate freeze is an estate planning tool used to protect assets that a person may have acquired over the course of their lifetime. It is used to lock in the current value of the assets, so that if the value goes up over time, the increase in value is preserved for the benefit of future generations. In Arizona, an estate freeze works by transferring assets from the owner of the assets into a trust. The trust will be managed and controlled by a trustee or a trustee company. The owner of the assets will still receive the income from the assets, but they will no longer have the ability to control or dispose of them. Therefore, any increase in value of the assets will stay in the trust and will not be exposed to estate taxes. Estate freezes can help individuals to protect their assets from being subject to estate taxes and can also help to ensure that the assets are passed on to the heirs or beneficiaries according to the wishes of the owner.

Related FAQs

What is an inheritance trust?
How can I reduce the estate tax burden?
How can I ensure that my wishes are carried out after my death?
How can I plan for the future care of my minor children?
What happens if I don't have an estate plan?
How can I transfer real estate without probate?
What is a guardianship and why should I consider it?
What steps should I take to make sure my estate plan is properly executed?
What are the benefits of establishing a family limited partnership?
What are the estate planning laws in my state?

What is an estate freeze and how does it work?

Related FAQs

Related Blog Posts