PARTNERS
For business owners
An estate freeze locks in the current value of your shares, shifts future growth to the next generation through children or a family trust, and keeps your control through fixed-value preferred shares.
It does not remove the tax on the frozen value, create cash to pay it or settle fairness between children on its own. Those need separate decisions.
The short answer
An estate freeze exchanges your growth shares for fixed-value preferred shares, so future growth belongs to your children or a family trust and your tax at death is capped at today’s value. Planned properly, it includes insurance sized to the frozen tax, a decision on how children inside and outside the business are treated, and updated wills and agreements.
A business worth $3 million today that grows to $8 million is taxed at death on the $3 million frozen value, not the full $8 million. The $5 million of growth belongs to the next generation’s shares.
≈ $1.34 million
Tax at death avoided on $5 million of future growth, at 2026 top Ontario rates.
The liquidity failure pattern. An owner freezes at $2.5 million. The business grows to $7 million. At death, the frozen shares still trigger about $670,000 of tax. There is no cash, and the family makes forced decisions.
When a freeze should not be done. When value is volatile, cash flow cannot sustain the funding, the family is not aligned on control, or the owner cannot obtain insurance to fund the liability.
01
A focused conversation about your corporate structure, assets, family situation and goals. No forms and no product discussion.
02
We confirm today’s value and map the tax at the freeze date and at death.
03
We design the share reorganization and trust mechanics with your accountant and corporate lawyer.
04
We size the insurance that funds the frozen liability and compare eight major Canadian insurers.
05
We coordinate implementation, support the family conversation and review the plan as the business grows.
When the corporation has grown significantly, more growth is expected and you intend to pass the business or its value to the next generation, ideally before a major jump in value.
No. It caps the tax at the frozen value and moves future growth to the next generation. The frozen value is still taxed at death and needs funding.
Almost always. A freeze changes the shares you own, and your will must reflect them and align with any family trust and shareholder agreement.
Book a free 30-minute call to see what a freeze would lock in and how the tax would be funded. No obligation.
General educational information. Legal, tax and insurance decisions require advice appropriate to your circumstances.
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Sami Majdalani is a licensed life and accident and sickness insurance agent in Ontario. Verify my licence on FSRA’s website. Insurance and segregated fund contracts are placed through HUB Financial, a managing general agency. Eagle Wealth Partners is paid by commission from the insurers whose products clients buy, and may also receive bonuses or other incentives from insurers. A full disclosure of the insurers we represent, how we are paid and any conflicts of interest is available on request.
Segregated fund contracts are individual variable insurance contracts issued by insurance companies. Any amount allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value.
Information on this site is general and is not legal, tax or insurance advice for your situation. Planning is implemented with your legal and tax professionals. © 2026 Eagle Wealth Partners Inc.