Leona runs a succesful business that she incorporated 10 years ago that has been growing successfully over that time period.  Recently her oldest daughter has become actively involved in the business and has shown a tremendous ability to take the company to the next level.  Leona has talked to her accountant about freezing the value to the company so that future growth can go to her daughter.  The accountant suggests that she should transfer her shares to a new holding company where she can take back fixed-value retractable redeemable voting preferred shares, while her daughter subscribes to new common shares of the holding company at a nominal cost. 

 What estate planning technique is this called?

Answer rating: 100% (QA)

The estate planning technique being described here is known as a freeze transaction or share freeze ... View the full answer