Pay on Death Designation for Vehicles

The Arizona Revised Statutes now allow for a Beneficiary Designation for Vehicle Transfer upon Death. The designation can be signed and kept with the title of the car, mobile home or other applicable vehicles. Since the law is new, it is not clear how effective it will be if the the vehicle is being financed.

Obama proposes $3.5 estate tax exclusion

President Obama's current proposal in his budget is a permanent the estate, and gift tax parameters as they applied during 2009. The top tax rate would be 45 percent and the exclusion amount would be $3.5 million for estate and $1 million for gift taxes. As reflected in the Administration’s adjusted baseline projection, the portability of unused estate and gift tax exclusion between spouses would be made permanent. The proposal would be effective for the estates of decedents dying, and for transfers made, after December 31, 2012.

This may be a position to negotiate. That is, the administration may agree to the $5 million of estate and gift tax but a 45% tax rate. That was a the Democratic party's position in the last election. Only time will tell, but generally, this is good news because it looks like we will not be going back to the $1 million exemption.

Premarital is needed to make earnings sole and separate

If you need to protect your fiancee or spouse from your creditors, then simply titling assets as separate property is not enough. A pre-marital agreement or post-marriage agreement is the only way your earnings can be considered separate property under Arizona law. Otherwise, if you use earnings to pay the mortgage or add to an investment in your spouse's name, you risk changing that asset to community property which your creditors can reach.