What is an estate freeze and how does it work?

An estate freeze is a legal strategy used in estate planning that helps to protect your estate from inheritors and creditors. It works by freezing the value of your estate at the current market value and any future increases in the value of your estate are passed on to the next generation instead of to you. The estate freeze is typically used by individuals who have a large estate and who want to pass it on to future generations. When you do an estate freeze, you transfer ownership of your assets to a trust, which then owns the assets. You can choose to name the trust after yourself or another person. The trust then holds your assets, and any future appreciation in the value of the assets will be passed on to the trust’s beneficiaries instead of to you. This ensures that your estate is preserved and any appreciation passes on to the people you want it to. In Washington, estate freezes are governed by the Uniform Trust Code, which determines how the trust is set up and how it can be used. It is important to understand the rules and regulations of your state before doing an estate freeze, as it can be a complicated process. It is also important to consult with an experienced estate planning attorney who can help you create the best plan for your circumstances.

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What is an estate freeze and how does it work?

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