An estate freeze is a technique that locks in the current value of an owner's interest for estate-tax purposes, shifting future appreciation to heirs or trusts. Methods include recapitalizing into preferred and common shares, selling to an intentionally defective grantor trust, or using a grantor retained annuity trust. Freezes work best with appreciating, closely held assets and coordinated liquidity planning.

Owners freeze value before a growth phase to shift appreciation to heirs. Advisors coordinate recapitalizations or trust sales with valuations and interest-rate assumptions, and pair coverage to fund taxes. Post-transaction reviews track performance and confirm governance and cash-flow targets are met.