Let’s talk about something most people don’t hear about until it’s too late: the estate freeze.

It sounds complicated, but the idea is actually pretty straightforward, and it can be one of the smartest moves you make when it comes to planning your retirement, your legacy, and how much tax your family ends up paying in the future.

So, what is it?

An estate freeze is a tax strategy that locks in the current value of your assets—like a business, rental property, or shares in a company—so that any future growth goes to someone else, usually your children or a family trust.

In simple terms, you say:

“This asset is worth $2 million today. Any growth beyond that belongs to the next generation.”

You still keep control. But from a tax perspective, your future tax bill is frozen at today’s value. That means your kids (or whoever inherits) will benefit from the growth—without increasing the tax owed when you pass away.

Why would anyone do this?

You lock in your tax bill

If you hold onto growing assets until you die, your estate could owe a big chunk in capital gains tax. Freezing the value now limits that future hit.

You shift growth to your kids (and maybe split income too)

By moving growth to your children or a family trust, you might be able to reduce overall taxes if they’re in a lower tax bracket. (Just watch out for CRA rules like “Tax on Split Income” or TOSI.)

You keep control

This isn’t about giving up everything today. With the right structure, you can still make all the decisions, you’re just locking in the value for tax purposes.

You set up your retirement income

Some people use what’s called a “wasting freeze”—they gradually redeem their frozen shares over time. That gives them income in retirement, while still passing on growth to the next generation.

You reduce probate

In many provinces, probate fees are based on the size of your estate. If you’ve already frozen the value and moved future growth out of your name, your estate might owe less.

Is it right for everyone?

Not always. Here are a few things to think about:

• Do you have a business or growing assets? If your wealth is mostly in things that don’t grow much, like cash, this strategy may not be helpful.
• Are you ready to plan for succession? If you’re not sure who should take over or benefit from your estate, you may want to sort that out first.
• Do you have a good team? You’ll need help from a financial advisor, accountant, and estate lawyer to do this properly.

Bottom line

An estate freeze isn’t just for the ultra-wealthy. If you’ve built something valuable—like a business or a portfolio, it’s worth understanding how this strategy works.

It’s not about giving everything away. It’s about being intentional with your planning, reducing taxes, and making sure the people you care about benefit from what you’ve built.

Want to know if an estate freeze makes sense for your situation? Talk to your advisor or accountant. It could be one of the best long-term planning decisions you ever make.