Legal Question in Real Estate Law in California

Re: buyer vesting on grant deed

In California, community property with right of survivorship is the best way to title the property if your intention is for full right and title to vest with the surviving spouse. There will be a step-up in your tax basis, which will be beneficial when selling the property. The right of survivorship means that title transfers at death by operation of law without probate. I hope this helps.

I am also a licensed real estate broker and often assist buyers make their real estate purchase. Though I am entitled to the full buyer's broker fee, I rebate up to 1/2 of that fee to my client buyer at closing, which can be applied to closing costs. If you need my assistance as a broker, feel free to contact me. This is not a solicitation if you already have a broker.

Re: buyer vesting on grant deed

The only truly new vesting option is community property with right of survivorship, which was recently created by the legislature.

Previously, married couples in California could have chosen from community property (which was without right of survivorship), joint tenancy, and tenancy in common. So, we now have three options instead of four. (Footnote: to be super technical, there might be a couple of other options, rarely used and of no particular value.)

If your intention truly is to leave the entire property to the survivor of you, and then to the survivor's heirs, disregarding the heirs of the first of you to die, then a vesting with right of survivorship is appropriate.

If, on the other hand, both of you would prefer the survivor to possess the entire property for his or her life, then the property to be split between each of your heirs, a vesting with right of survivorship is not the way to go....decades ago, life estates would have been the family attorney's suggestion. Today, trusts are are more flexible, predictible and reliable way to assure a second-marriage couple's desires are met, long run.

Therefore, my suggestion is that both of you have a free initial consultation with an estate-planning attorney BEFORE taking title to the property, and lay out your golas and expectations for this home, and your other property, two or three generations down the pike.

Your heirs will be forever thankful that you spent a few bucks on estate planning rather than taking a single-generation approach.

Re: buyer vesting on grant deed

Yes, the Community Property with right of Survivorship is the best means to effectuate your desires.

The tax savings occur at the death of the first spouse, the second will take with no estate tax AND a step up in basis for the date of death.

Passing this property on to your children, or whomever else you desire, is better done with a family trust.

Please contact our office to arrange the creation of the documents you need at 626-578-0708 or online at www.No-Probate.com

Re: buyer vesting on grant deed

Oops, I meant we now have four options instead of only three.