Sole and Separate (AKA: Tenancy in Severalty) - Title is held by one person.
Community Property - Requires a valid marriage between two persons. Each spouse holds an undivided one-half interest in the estate. One spouse cannot partition the property by selling his or her interest. Requires signatures of both spouses to convey or encumber. Each spouse can devise (will) one-half of the community property. Upon death the estate of the decedent must be: cleared: through probate, affidavit or adjudication. Both halves of the community property are entitled to a "stepped up" tax basis as of the date of death.
Community Property With Right Of Survivorship - Requires a valid marriage between two persons. Each spouse holds an undivided one-half interest in the estate. One spouse cannot partition the property by selling his or her interest. Requires signatures of both spouses to convey or encumber. Estate passes to the surviving spouse outside of probate. No Court Action required to "clear" title upon the first death. Both halves of the community property are entitled to a "stepped up" tax.
Joint Tenancy With Right Of Survivorship - Parties need not to be married; may be more than two joint tenants. Each joint tenant holds an equal and undivided interest in the estate, unity of interest. One joint tenant can partition the property by selling his or her joint interest. Requires signatures of all joint tenants to convey or encumber the whole. Estate passes to surviving joint tenants outside of probate. No court action required to "clear" title upon the death of joint tenant(s). Deceased tenant's share is entitled to a "stepped up" tax basis as of the date of death.
Tenancy In Common - Parties need not be married; may be more than two tenants in common. Each tenant in common holds an undivided fractional interest in the estate. Can be disproportionate, e.g. 20% and 80%, 60%, 20%, 20% ect. Each tenant's share can be conveyed, mortgaged or devised to a third party. Requires signatures of all tenants to convey or encumber the whole. Upon death the tenant's proportionate share passes to his or he heirs by will or intestacy. Upon death the estate of the decedent must be "cleared through probate, affidavit or adjudication. Each share has its own tax basis. |
