What is an estate freeze and how does it work?

An estate freeze is a legal strategy used in estate planning to help protect assets from taxation, inflation, and other financial risks. It involves transferring assets from a person, known as the donor, to another person or entity, such as a trust or another family member. The donor retains some rights over the transferred assets, such as the right to collect income from them. In Nebraska, estate freezes are governed by the Uniform Trust Code (UTC), which outlines the various types of transfers that can occur in an estate freeze. Generally, a transfer of ownership will occur, but details of the transfer are determined based on the circumstances of the estate freeze and the needs of the participants. For example, transferring ownership to another family member or trust may help ensure the assets are protected from tax liability or other financial risks. Additionally, the terms of the transfer can be tailored to suit the needs of the donor. For instance, the donor could keep a right to receive income from the assets or the right to appoint the ultimate beneficiary of the assets. Overall, an estate freeze is an estate planning tool used to protect assets from taxation, inflation, and other financial risks. It involves transferring ownership of assets from the donor to another person or entity, and the exact terms of the transfer are determined based on the needs of the donor.

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What is an estate freeze and how does it work?

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