One of the advantages of an estate freeze is that the common stock is not included in the gross estate of the donor.

Question

Quizplus · Accepted Answer

An estate freeze is a planning technique that allows a donor to transfer future growth and appreciation of their assets to their heirs while retaining control and income from the assets during their lifetime. By freezing the value of the assets, any future appreciation streams to the heirs and is not included in the donor's gross estate for estate tax purposes. Therefore, the common stock is not included in the gross estate of the donor, making option A true.

One of the Advantages of an Estate Freeze Is That