What is an estate freeze?
As a business becomes more and more successful its value grows and therefore the value of the shares representing the equity in the business. If one freezes the value then all future growth will accrue to the children, or, most often, a family trust of which the children are beneficiaries. The value of the state has now been identified which allows for the ability to plan for the funding of the taxes that will be owning on the death of the original shareholder (the freeze shares taken back by the original shareholder are deemed to have been disposed of on death triggering a capital gain). By making the freeze shares voting shares the original shareholder is ensured of keeping control of the company.