Kendrick, age 55, owns a successful small business, ZXC Inc.

The estate freeze should be implemented immediately if Kendrick expects the business to continue appreciating. The purpose of the freeze is to lock in the current value of the owner's interest, usually by exchanging growth shares for fixed-value preferred shares, while future growth accrues to the successor generation or a trust. Waiting until the gift date, one month before the gift, or death allows additional appreciation to remain taxable to Kendrick. Since the company is already valued at $800,000 and expected to grow by $25,000 per year, every year of delay increases the value exposed to future tax in Kendrick's estate. A freeze also needs legal and tax design, including valuation, share terms, control, income needs, and succession intentions. Among the options, immediate implementation best achieves the objective of reducing future tax growth in his hands. Study Guide focus: estate freezes, business succession, preferred shares, future growth transfer, and tax minimization.

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