7/30/2019 3 Ways to Hold Title

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Ways to Hold Title in ArizonaA Comparison

Community Property Community Propertywith Right of Survivorship

Joint Tenants / Tenantsin Common

Joint Tenants with Right of Survivorship

Requires a validmarriage between two

persons.

Requires a validmarriage between two

persons.

Parties need not bemarried; may be morethan two tenants.

Parties need not bemarried; may be morethan two joint tenants.

Each spouse holds anundivided one-half interest in the estate

Each spouse holds anundivided one-half interest in the estate

Each tenant incommon holds anundivided fractionalinterest in the estate.Can bedisproportionate; e.g.,

20% and 80%, 60%and 40%, etc.

Each joint tenantholds an equal andundivided interest inthe estate, unity of interest

One spouse cannot partition the property by selling his or her interest.

One spouse cannot partition the property by selling his or her interest.

Each tenants sharecan be conveyed,mortgaged, devised toa third party.

One joint tenant can partition the property by selling his or her joint interest

Requires signatures of both spouses toconvey or encumber.

Requires signatures of both spouses toconvey or encumber.

Requires signatures of all tenants to conveyor encumber thewhole.

Requires signatures of all joint tenants toconvey or encumber the whole.

Each spouse candevise (will) one-half of the community

property.

Estate passes to thesurviving spouseoutside of probate.

Upon death, thetenants proportionateshare passes to his or her heirs by will or intestacy.

Estate passes tosurviving joint tenantoutside of probate.

Upon death, the estateof the decedent must

be cleared through probate, affidavit or adjudication.

No court actionrequired to cleartitle upon the firstdeath.

Upon death, the estateof the decedent must

be cleared through probate, affidavit or adjudication.

No court actionrequired to cleartitle upon the death of

joint tenant(s).

Both halves of thecommunity propertyare entitled to astepped up tax basisas of the date of death.

Both halves of thecommunity propertyare entitled to astepped up tax basisas of the date of death.

Each share has itsown tax basis.

Deceased tenantsshare is entitled to astepped up tax basisas of the date of death.

Note: Arizona is a community property state. Property acquired by a husband and wife is presumed to be community propertyunless legally specified otherwise. Title may be held as Sole and separate. If a married person acquires title as sole andseparate, his or her spouse must execute a disclaimer deed to avoid the presumption of community property. Parties may chooseto hold title in the name of an entity; e.g., a corporation, a limited liability company, a partnership (general or limited), or a trust.Each method of taking title has certain significant legal and tax consequences. Therefore, you are encouraged to obtain advicefrom an attorney or other qualified professional.