Page 26 - AZ Home Guide

WAYS TO TAKE TITLE IN ARIZONA

The manner in which you choose to take title may have significant legal and tax planning consequences. You should
contact your attorney and/or tax consultant on which manner best suits your needs.

Joint Tenancy with Right of Community Property with
Community Property Tenancy in Common
Survivorship Right of Survivorship
Parties need not be Parties need not be
Marriage Requires a valid marriage married; may be more than Requires a valid marriage married; may be more than
Requirements between two persons. between two persons.
two joint tenants. two tenants in common.
Each tenant in common
holds an undivided
Each spouse holds an Each joint tenant holds Each spouse holds an and fractional interest
Spouse Interest undivided one-half interest an equal and undivided undivided one-half interest in the estate. Can be
in the estate. interest in the estate. in the estate. disproportionate, i.e. 20% &
80%; 60% & 40%; 20%, 20%,
20%, & 40%; etc.
BUYING Partitioning partition the property by by selling his or her joint partition the property by Each tenant’s share can be
One joint tenant can
One spouse cannot
One spouse cannot
partition the property
conveyed, encumbered or
devised to a third party.
selling his or her interest.
selling his or her interest.
interest.
Requires signatures of all
Requires signatures of
Requires signatures of
Requires signatures of
Signatures both spouses to convey or joint tenants to convey or both spouses to convey or all tenants to convey or
encumber. encumber the whole. encumber. encumber the whole.
Each spouse can devise Estate passes to the Estate passes to the Upon death the tenant’s
Inheritance (will) one-half of the surviving joint tenants surviving spouse outside of proportionate share passes
community property. outside of probate. probate. to heirs by will or intestacy.
Upon death the estate Upon death the estate
of the decedent must be No court action required to No court action required of the decedent must be
Upon Death “clear” title upon the death to “clear” title upon the first
“cleared” through probate, of joint tenant(s). death. “cleared” through probate,
affidavit, or adjudication. affidavit, or adjudication.
Both halves of the Deceased tenant’s share is Both halves of the
Community Property community property are entitled to a “stepped up” community property are Each share has its own tax
On Death entitled to a “stepped up” tax basis as of the date of entitled to a “stepped up” basis.
tax basis as of the date of death. tax.
death.

25 ARIZONA HOME GUIDE | PTAAZ.COM