Refresher on Co-Ownership

Community Property The California Civil Code defines community property as property acquired by husband and wife, or by either. Real property conveyed to a married man or woman is presumed to be community property, unless otherwise stated. Under community property, both spouses have the right to dispose of one half of the community property. If a spouse does not exercise his/her right to dispose of onehalf to someone other than his/her spouse, then the one-half will go to the surviving spouse without administration. If a spouse exercises his/her right to dispose of one-half, that half is subject to administration in the estate. Example: John Doe and Mary Doe, husband and wife, as community property. Example: John Doe and Mary Doe, husband and wife. Example: John Doe, a married man. Joint Tenancy A joint tenancy estate is defined in the Civil Cod e as follows: "A joint interest is one owned by two or more persons in equal shares, by a title created by a single will or transfer, when expressly declared in the will or transfer, to be a joint tenancy." A chief characteristic of joint tenancy property is the right of survivor ship. When a joint tenant dies, title to the property immediately vests in the surviving joint tenants). As a consequence, joint tenancy proper Example: John Doe and Mary Doe, husband and wife, as joint tenants. Tenancy in Common Under tenancy in common, the co-owners own undivided interests, but unlike joint tenancy, these interests need not be equal in quantity or duration, and may arise at different times, There is no right of survivor ship times. There is no right of survivor ship; each tenant owns an interest which, on his or her death, vests in his or her heirs or devisers. Example: John Doe, a single man, as to an undivided 3/4the interest, and George Smith, a single man, as to an undivided 1/4the interest; as tenants in common. Trust Title to real property in California may be held in a title holding trust. The trust holds legal and equitable title to the real estate. The trustee holds title for the trustor/beneficiary who retains all of the management rights and responsibilities. Community Property with Right of Survivorship Community Property of a husband and wife, when expressly declared in the transfer document to be community property with the right of survivor ship, and which may be accepted in writing on the face of the document by a statement signed or initialed by the grantees, shall, upon the death of one of the spouses, pass to the survivor, without administration, subject to the same procedures as property held in joint tenancy. The preceding summaries are a few of the more common ways to take title to real property in California and are provided for informational purposes only. for a more comprehensive understanding of the legal and tax consequences, appropriate consultation is recommended. There are significant tax and legal consequences on how you hold title. We strongly suggest contacting an attorney and /or CPA for specific advice on how you should actually vest your title.