Estate Freezes: Basics and Benefits

Canadian Tax Essentials: Personal & Corporate · 3:45

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Lyrics

[Verse 1]
When wealth has grown beyond your dreams
And future gains look bright ahead
You want to pass it to your heirs
But keep control until you're dead
The answer lies in freezing time
Your current value locked in place
While all the growth from this day forth
Goes to the next generation's space

[Chorus]
Freeze your estate, crystallize today
Preferred shares hold your current value's way
Common shares for kids, they get the growth
Keep control while passing wealth to both
Freeze it, please it, plan it right
Transfer growth but hold on tight

[Verse 2]
You reorganize your company
Exchange your commons for preferred
Fixed dividend, redemption rights
Your current value is preserved
The children get new common shares
For nominal or gifted price
They'll capture all future increases
While you maintain your voting slice

[Chorus]
Freeze your estate, crystallize today
Preferred shares hold your current value's way
Common shares for kids, they get the growth
Keep control while passing wealth to both
Freeze it, please it, plan it right
Transfer growth but hold on tight

[Bridge]
Attribution rules don't apply here
If the kids pay fair market price
Income splitting becomes valid
Tax planning rolling the dice
But watch out for the deemed disposition
Capital gains may come to play
Get your valuation expert
To assess the value today

[Verse 3]
The benefits are crystal clear
Your estate won't grow from here
Probate fees are minimized
Tax burden's better organized
You keep the cash flow coming in
Through preferred dividend streams
While junior builds their future wealth
On growth beyond your wildest dreams

[Chorus]
Freeze your estate, crystallize today
Preferred shares hold your current value's way
Common shares for kids, they get the growth
Keep control while passing wealth to both
Freeze it, please it, plan it right
Transfer growth but hold on tight

[Outro]
When the time comes for succession
Your estate is frozen still
All the growth has passed along
According to your structured will
Estate freeze, the wealthy's friend
Plan today for tomorrow's end

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