Page 14 - Arizona Buyers Guide

WAYS TO TAKE TITLE IN ARIZONA

JOINT TENANCY COMMUNITY PROPERTY
COMMUNITY WITH THE RIGHT OF WITH THE RIGHT OF TENANCY IN COMMON
PROPERTY
SURVIVORSHIP SURVIVORSHIP

Requires a valid marriage Parties need not be married: Requires a valid marriage Parties need not be married:
between two persons may be more than two joint between two persons may be more than two
tenants tenants in common

Each spouse holds an Each joint tenant holds an Each spouse holds an Each tenant in common
undivided one-half equal and undivided interest undivided one-half holds an undivided fractional
interest in the estate in the estate, unity of interest in the estate interest in the estate and can
interest be disproportionate
(ie: 20%-80% or 60%-40%)

One spouse cannot partition One joint tenant can One joint tenant can Each tenant’s share can be
the property by selling his or partition the property partition the property conveyed, mortgaged or
her interest by selling his or her by selling his or her joint devised to a third party
joint interest interest

Requires signatures of Requires signatures of all Requires signatures of Requires signatures of
both spouses to convey joint tenants to convey or both spouses to convey all tenants to convey or
or encumber encumber the whole or encumber encumber the whole

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

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

Both halves of the Deceased tenant’s share is Both halves of the
community property are entitled to a “stepped up” tax community property are Each share has its own tax
entitled to a “stepped up” tax basis as of the date entitled to a “stepped up” tax basis
basis as of the date of death of death basis as of the date of death

NOTES ON “SOLE AND SEPARATE” TITLE IN ARIZONA
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.
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