02.19.2002 :: Real Estate News
Married Couples - A Third Way to Hold Title
by Graham Morland

Beginning July 1, 2001 married couples in California have a new way to hold title to their real estate property(s). Traditionally, spouses could hold title to property together in one of two ways: joint tenancy, or community property. There is now a third form of holding title known as "community property with right of survivorship" It is intended to combine the most favorable characteristics of joint tenancy and community property. As with traditional community property , on the death of the first spouse, both halves of the community property receive a step up in income tax basis. However, the inconvenience of spousal petition petition required with traditional community property is eliminated. As with joint tenancy, on the death of the first spouse, the deceased spouse's interest in the property passes to the surviving spouse, with only the need to record a simple affidavit to actually remove the deceased spouse from title. The combination of stepped up basis and right of survival can be very important attributes for many couple who intend to leave particular property to the surviving spouse.

While it may be useful for many married couples it should be noted that it may not be appropriate for all couples. Couples may have some significant estate and tax consideration that may affect their decision. For example, if spouses wish to leave property at death to people (family, friends, or children) other than one another, this new form of title would not be suitable. Likewise, if married couples have a revocable living trust that contains estate tax saving features, this form of title may not work, and may harm the estate plan. If couples are considering an estate plan, or already have one, they should consult their estate planning attorney before changing title to the new form.

This article is one of many brought to you courtesy of Graham Morland, a realtor,and sponsor of this website. If you have questions regarding this article, or have specific real estate buying or selling needs in the Bay area, call Graham at 831-464-5237, or email him at graham@santacruzrealty.net.

Graham Morland is the producer of SantaCruz-RealEstate.com. He moved to the field of professional real estate after a very successful career as an executive in high technology computing. Currently the broker/owner of Sterling Properties, Graham can be reached by email at Graham@SantaCruz-RealEstate.com or by phone at 831.688.2310.