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Family Investment Company

Growth/Freezer shares

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I've been reading up a lot on FIC's and just watched a 30 minute video on it to provide some additional info. The example they referred to looks as follows:

They were referring to a prop co but assume it could work for any type of company. 

Mr & Mrs X are current owners and the shares have value. 

Several new share classes are set up

Mr & Mrs X own A Shares which have voting and dividend rights only (freezer shares)

B/C/D shares are set up and transferred to children/parents etc. (have no voting rights but have rights to dividends) 

E/F/G shares set up and held by Mr & Mrs X for future gifting to grandchildren (have no voting rights but have rights to dividends) 

H Shares held by Disrectionary trst - entitled to capital but no voting rights or rights to dividends. (Growth shares) 

I understand the theory is that you are freezing the value of the shares held by Mr & Mrs X and the shares they transfer have no or very little value. 

My questions are:

1) Has anyone had much experience with this set up and see any issues, it appears to be aimed at IHT planning?

2) If shares are transferred to Mr & Mrs X's parents who use the dividend income to pay for school fee's of their grandchildren (Mr and Mrs X minor children), is this not income shifting and taxable still on Mr & Mrs X?

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