Increase in the maximum value of assets to avoid probate

The Arizona legislature has passed a law effective on September 12, 2013, which increases the amount of assets which would require a probate. You can avoid probate only if the assets you hold in your name do not exceed $100,000 of real property or $75,000 in personal property (cash, accounts and tangible personal property). This is increased by $25,000. If more than $5000 of wages are to be paid then probate is needed. This amount was not increased Therefore, be sure to utilize your pay on death designations, transfer on death designations or title your assets in your trust.

“State of celebration” for same sex couples.

The IRS has ruled that same-sex couples legally married in a jurisdiction that recognizes same-sex marriages, will be treated as married for federal tax purposes. The ruling applies even if a same-sex couple moves to a jurisdiction that does not recognize same-sex marriages. Therefore, the IRS in a revenue ruling, 2013-17, have adopted a “state of celebration” approach for the treatment of same-sex marriages. For example, if a same-sex couple marries in California, a state that recognizes same-sex marriages, and moves to Arizona, a state that does not recognize same-sex marriages, the same-sex couple will be treated as married for federal tax purposes because they were married in a jurisdiction that recognizes same-sex marriages. Revenue Rule 2013-17 applies to all federal tax laws in which marriage is a factor, including filing status, personal and dependency exemptions, standard deductions, and employee benefits. Take care though, Revenue Rulings do not have the same force of precedence as court cases – the IRS can change its position at any time.