Christy Barton is a veteran in the legal space as an attorney specializing in estate planning, asset protection, and business planning. Throughout the discussion, Christy provided valuable insights into these crucial aspects of financial management.
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In the first part of our conversation, Christy Barton emphasized the significance of trust-based estate plans. He particularly highlighted the advantages of joint trusts, which offer robust protection against creditors and can yield substantial tax benefits when structured according to specific laws. An essential concept explored was the Tax Basis Bridge, a powerful tool for achieving a 100% basis step-up on assets upon the death of a spouse. This approach can lead to substantial savings and a reduction in capital gains tax. Christy supported his explanations with real-life examples, underlining the importance of maximizing cost basis step-ups in estate planning.
Continuing the discussion, we delved further into estate planning intricacies and tax strategies. The spotlight remained on the Tax Basis Bridge and its potential for delivering significant tax advantages when transferring assets between spouses. The joint revocable trust governed by Missouri law was discussed as a means of safeguarding assets while optimizing tax benefits. Once again, the Tax Basis Bridge emerged as a valuable instrument for achieving a 100% basis step-up upon a spouse’s passing, resulting in substantial tax savings and reduced capital gains tax. Real-life scenarios were shared to illustrate the effectiveness of these strategies, with Christy underscoring their importance in comprehensive estate planning.
Lastly, we discussed the technical nuances of estate planning, with a particular focus on the Tax Basis Bridge and its potential for substantial tax savings. He explained how granting a general power of appointment over specific assets to another individual could lead to their inclusion in that individual’s federal estate. Such inclusion can result in a cost basis step-up, a valuable tax-saving strategy. Christy also provided practical examples of how this approach could be applied to various assets, including real estate and personal property. He emphasized the criticality of not overlooking the potential for a cost basis step-up in estate planning, as it can pave the way for tax-free sales or depreciation harvesting while the individual is still alive.