s86 Estate Freeze

A section 86 estate freeze establishes and then freezes all or part of the value of growing assets of a business at its current fair market value to the current generation of business owners, such that any future growth in the value of these assets accrues to the next generation. The resulting effect is that the value of the asset’s future growth will not be taxed in the hands of the current shareholder at the time of sale or his/her death. The beneficiaries of the estate will pay the tax on their inherited shares, which can be offset by the owner taking out a life insurance policy. For more information about the S86 estate freeze, please click here.