What is an estate freeze?
An estate freeze is a technique used in Washington to help protect the value of an estate or family business. It involves restructuring the ownership of assets so that the value of the estate is frozen or “locked in." This means that the value of the estate remains the same, despite changes in the market. When an estate freeze is used, assets are transferred from the original owner to a “freeze entity”, such as a trust, corporation, or limited liability company. This freeze entity may be owned by the original owner, their spouse, children, or other family members. The value of the assets transferred to the freeze entity are “frozen” and cannot be changed. At the same time, the original owner can still benefit from the assets. They can continue to receive the income and appreciation on the assets, but they will not benefit from further increases in the value of the assets. An estate freeze can be a useful tool for estate planning in Washington. It allows the original owner to pass on their assets to their heirs at a fixed value, while still allowing them to benefit from the assets while they are alive. It can also help protect the family business from market fluctuations, and provide financial security for the owner and their heirs.
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