Page 15 - The Panozzo Team - Buyers Guide EBook

ARIZONA HOME BUYER’S GUIDE

v Ways to Take Title in Arizona

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

NOTE: Arizona is a community property state. Property acquired by a husband and wife is presumed to be community property
unless legally specified otherwise. If a married person acquires title as “Sole and Separate”, his or her spouse must execute a
disclaimer deed to avoid the presumption of community property. Parties may choose to hold title in the name of an entity, e.g.
a corporation, a limited liability company, a partnership (general or limited), or trust. Each method of taking title has certain
significant legal and tax consequences. Therefore, you are encouraged to obtain advice from an attorney or other qualified
professional.

602.667.1000
...Where Experience equals Excellence
15