What is an estate freeze and how does it work?

An estate freeze is a legal tool used in Oklahoma estate planning that helps protect an individual’s assets from inflation. In essence, an estate freeze freezes the value of an estate at the current value, and allows subsequent growth to pass on to beneficiaries without incurring further taxes. This is especially beneficial for those who want to preserve their estate’s value and pass it on to future generations. An estate freeze works through a two-step process. First, the current assets in the estate are allocated to a trust. This trust can be a revocable living trust or an irrevocable trust. This trust is then used to purchase or arrange investments that are expected to increase in value over time. The assets placed in the trust are “frozen” at their current value, and any future appreciation is passed to the beneficiaries of the trust. The second step of an estate freeze is to transfer control of the trust assets to a designated successor. This is typically done either with a transfer on death deed or through a will. This transfer may include instructions regarding how and when the trust assets are to be distributed. The successor then has the power to control the trust and can make decisions on how to manage the trust assets. An estate freeze is a great tool for those who want to protect their assets and pass them on to future generations. It is important to consult with an estate planning lawyer in Oklahoma to ensure that an estate freeze is done properly, and in accordance with the law.

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What is an estate freeze and how does it work?

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