- 1). Understand sole ownership. California is a community of property state and the spouse of a married person holding title to real estate is automatically a co-owner unless specifically excluded. If a married man wishes to hold title as his sole and separate property, a Quit Claim deed must be signed by his wife, relinquishing all rights and claims to the property. Sole ownership title can also be held by a single man or woman who has never been married or an unmarried man or woman who has been, but is no longer married.
- 2). Choose joint ownership with survival rights if you are married. When a married couple holds title in "Community of Property" it means each spouse owns 50 percent of the property. When one spouse dies without a will the property automatically reverts to the surviving spouse. Each spouse can leave his or her half ownership of the property to another person in his will. When one spouse dies in California, the value of both halves of the property is adjusted to fair market value by the county property appraiser, which can cause an increase in property taxes.
- 3). Consider "Joint Tenancy." Married couples, unmarried life partners and unrelated joint owners can choose to hold title to their real estate as joint tenants. There may be more than two title holders. This option also creates survival rights, thereby bypassing probate court upon the death of one of the title holders, but joint title holders may not will their property. The ownership automatically reverts to the remaining title holders in equal portions. In California, only the decedent's portion of the property is adjusted to fair market value for tax purposes.
- 4). Opt for "Tenancy in Common" if the owners do not hold equal shares in the property. An example of this would be three partner/owners, one of whom may own a 50 percent interest and each of the others a 25 percent interest in the property. Right of survivorship is not an option and each partner must will her portion or it will be part of her estate when she dies. Partners can sell their portion, whereupon the new owner becomes one of the tenants in common.
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