{"id":19626,"date":"2026-07-05T09:30:00","date_gmt":"2026-07-05T13:30:00","guid":{"rendered":"https:\/\/ebconseilfisc.com\/gel-successoral\/"},"modified":"2026-07-12T18:50:39","modified_gmt":"2026-07-12T22:50:39","slug":"estate-freeze","status":"publish","type":"post","link":"https:\/\/www.impots-ici.com\/en\/estate-freeze\/","title":{"rendered":"Estate Freeze: Lock in the Value of Your Business and Ensure a Smooth Transition"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text css=””]<\/p>\n

Your business is increasing in value, but you want to transfer future growth to the next generation without immediately giving up control or triggering tax on the entire accumulated value. An estate freeze can fix the owner\u2019s current economic value in preferred shares and assign future growth to new shares held by successors or a trust.<\/span><\/p>\n

A freeze is not a sale or automatic retirement plan. It is a reorganization that must respect fair market value, share rights, control objectives and the company\u2019s ability to redeem the frozen shares over time.<\/span><\/p>\n

What is frozen and what continues to grow<\/span><\/h2>\n

The owner generally exchanges common shares for preferred shares having a value equal to the current business value. New common shares with a low initial value are then issued to the people who will participate in future growth.<\/span><\/p>\n

The preferred-share value does not disappear. It remains in the owner\u2019s estate and must eventually be financed, redeemed, sold or transferred. The freeze separates accumulated value from future growth; it does not by itself solve liquidity, the will or fairness between active and non-active heirs.<\/span><\/p>\n

Value the business before reorganizing<\/span><\/h2>\n

A value that is too low may transfer a benefit to new shareholders. A value that is too high can leave the owner with shares that are difficult to redeem and reduce the economic incentive for successors. The valuation should consider results, assets, liabilities, prospects, risks and comparable transactions.<\/span><\/p>\n

The value must be consistent in resolutions, agreements, tax forms and accounting entries. A price-adjustment clause may address a reasonable difference in some circumstances, but it does not replace a serious valuation process.<\/span><\/p>\n

Who should receive the growth shares?<\/span><\/h2>\n

The new shares may be issued directly to children, key employees, a corporation or a family trust. The choice affects control, flexibility, financing, tax on split income and annual compliance. A trust may offer flexibility among beneficiaries but adds trustee duties and a long-term tax deadline.<\/span><\/p>\n

The owner must also decide which rights to retain: votes, dividends, redemption priority or other protections. The rights should reflect the commercial agreement. A freeze that transfers growth without defining governance creates a future conflict rather than a succession plan.<\/span><\/p>\n