In our last post, we discussed the various types of shares and their ownership as part of our series on the mechanics of an Estate Freeze. You got the Opco Preferred shares at a frozen and fixed value of $10M and the Opco Voting shares for control. But, we stopped short on discussing who gets the Opco Equity shares. Remember, the Opco Equity shares are designed to benefit from any increase in Opco’s fair market value over and above the $10M freeze value.
In this third post of our series on estate freezes, we will discuss who should own the Opco Equity shares and how they should be held, directly or one step removed.