Page 6 - The Panozzo Team - International Real Estate Guide

Ways to

Take Title in Arizona

Community Joint Tenancy Community Property Tenants
Property With the With the in Common
Right of Survivorship Right of Suvivorship

• Requires a valid marriage • Parties need not be • Requires a valid marriage • Parties need not be
between two persons. married; may be more than between two persons. married; may be more than
two joint tenants. two tenants.

• Each spouse has an • Each joint tenant holds • Each spouse has an • Each tenant in common
undivided one-half interest an equal and undivided undivided one-half holds an undivided fractional
in the estate. interest in the estate, interest in the estate. interest in the estate. Can be
unity of interest. disproportionate; e.g., 20%
and 80%, 60% and 40%, etc.

• One spouse cannot • One joint tenant can • One spouse cannot • Each tenant’s share can be
partition the property by partition the property by partition the property by conveyed, mortgaged,
selling his of her interest. selling his or her joint selling his or her interest. devised to a third party.
interest.
• Requires signatures of • Requires signatures of all • Requires signatures of • Requires signatures of all
both spouses to convey or joint tenants to convey or both spouses to convey or joint tenants to convey or
encumber. encumber the whole. encumber. encumber the whole.

• Each spouse can devise • Estate passes to surviving • Estate passes to the • Upon death, the tenant’s
(will) one-half of the joint tenants outside of surviving spouse outside proportionate share passes
community property. probate. of probate. to his or her heirs by will
or intestacy.

• Upon death, the estate of • No court action required • No court action required • Upon death, the estate of
the decedent must be to “clear” title upon the to “clear” title upon the the decedent must be
“cleared” through probate, death of joint tenant(s). first death. “cleared” through probate,
affidavit or adjudication. affidavit or adjudication.

• Both halves of the • Deceased tenant’s share is • Both halves of the • Each share has its own
community property are entitled to a “stepped up” community property are tax basis.
entitled to a “stepped up” tax basis as of the date of entitled to a “stepped up”
tax basis as of the date of death. tax basis as of the date of
death. 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. Title may be held as “Sole and Separate”. 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 chose to hold title in the name of an entity; e.g., a corporation, a limited liability company, a partnership
(general of limited), or a trust. Each methods of taking title has certain significant legal and tax consequences. Therefore,
you are encouraged to obtain advice from an attorney or other qualified professional.

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