What is an estate freeze and how does it work?

An estate freeze is a legal strategy often used in estate planning law in Delaware. It is a way for an individual or family to manage the growth of their estate by transferring future gains in wealth or assets to another person or entity. It works by freezing the value of an estate at a certain point in time, and then transferring certain rights over the assets to another person or entity. This means that any further gains in the value of the assets are transferred to this new party. For example, you may wish to freeze the value of your estate today, and transfer the right to any increase in the value of your assets to a trust. This means that your assets will continue to grow, but the gains will not be included in your estate beyond the value that you have frozen. This is useful for avoiding high taxes on estate value growth, and also allows you to ensure your assets are managed according to your wishes after you pass away. Estate freezes are often created as part of a comprehensive estate plan, and can be done in various ways depending on the circumstances. It is important to work with a qualified and experienced estate planning lawyer in Delaware to create an estate plan that is tailored to your needs and in compliance with state laws.

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What is an estate freeze and how does it work?

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