Legal Question in Real Estate Law in California

Re: Pros and Cons of Joint and Community Ownership

There are significant differences between joint tenancy and community property. The major differences are:

1. With joint tenancy property the ownership of the property passes to the surviving joint owner immediately upon death of the other joint owner. A joint tenant cannot transfer with a will that joint tenants share of the property to a child or other party.

2. Community property on the other hand does not pass to the surviving spouse by operation of law as joint tenancy. Thus a portion of the property can be transferred as a part of estate planning. It is my understanding that upon the death of a spouse the basis in the house become the market value of the house at the time of death. You should verify this with a CPA or other tax expert.

One of the reasons given for joint tenancy is that title to the property passes by operation of law to the survivor. Thus requiring only the filing of an affidavit of joint tenancy and a copy of the death certificate. This same procedure has been used for community property.

Re: Pros and Cons of Joint and Community Ownership

With joint you will not have to go through probate if one of you dies. This is recommended for a married couple.