Sally wants to reduce estate taxes by fixing the value of estate assets at current levels. What is this practice called?

Question

Quizplus · Accepted Answer

An individual that wants to reduce estate taxes by fixing the value of estate assets at current levels is practicing estate freezing. The owner accomplishes the freeze by transferring the appreciation rights to another individual during the owner's lifetime. It often is a transaction involving a corporation or partnership, in which the owner of the business transfers interest in property with anticipated future appreciation to a younger family member, while retaining rights in income and principal in the property.

Sally Wants to Reduce Estate Taxes by Fixing the Value