PROPERTY ISSUES
TITLE
Beginning July 1, 2001, a married couple may hold title as community property with right of survivorship. The new form of title:
> Allows double step-up in basis;
> Requires that the surviving spouse inherit the property; and
> Allows proprty to pass to the surviving spouse without court action.
A married couple may execute new deeds transferring their old joint tenancy property to the new community property with right of survivorship. And, couples holding title as community property may prepare and record a new deed as community proprty with right of survivorship.
The change brings property title up to speed with bank and brokerage accounts, which already are eligible for right of survivorship titling in California.
| Effect of Title on Basis for Surviving Spouse |
Method of Holding Title |
Step-Up in Basis |
Decedent's separate property
|
Full step-up in basis to surviving spouse
|
Surviving spouse's separate property
|
|
|
No step-up for surviving spouse's share
|
|
1/2 step-up in basis, surviving spouse guaranteed to inherit
|
|
Full step-up in basis, regardless of who inherits decedent's share
|
Community property with right of survivorship
|
Full step-up in basis, surviving spouse guaranteed to inherit
|
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