Legal Question in Wills and Trusts in California
Vesting Selection
What would be the best vesting language to use when purchasing a house, to assure the least Capital Gains having to be paid upon the death of a spouse and subsequent selling of the property. Joint Tenancy or Community Property with the Right of Survivorship?
Asked on 4/27/04, 8:50 pm
1 Answer from Attorneys
Ken Koenen
Koenen & Tokunaga, P.C.
Re: Vesting Selection
Ther is no difference in regards to capital gain on the sale. If it is a primary residence, you can exclude up to $500K in cap gains, provided all conditions are met.
In regards to death, in joint tenancy, although the survivor obtains sole ownership of the property, the step up in basis only affects one-half of the property. Under community property with ROS, the survivor gets full ownership with a full step-up in basis.
Answered on 4/28/04, 12:19 pm
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