Ways To Take Title In Arizona | Peggy McBain , ABR, CRS - Long Realty Company

WAYS TO TAKE TITLE IN ARIZONA : A COMPARISON

Community Property	Joint Tenancy with Right of Survivorship	Community Property with the Right of Survivorship	Tenancy in Common
Requires a valid marriage between two persons.	Parties need not be married; may be more than two joint tenants.	Requires a valid marriage between two persons.	Parties need not be married; may be more than two tenants in common.
Each spouse holds an undivided one-half interst in the estate	Each joint tenant holds an equal and undivided interest in the estate, unity of interest.	Each spouse holds an undivided interest in the estate.	Each tenant in common holds an undivided fractionsl interest in the estate. Can be disproportionate. e.g.20% and 80%; 60% and 40%; 20%, 20%, 20% and 40%; etc.
One spouse cannot partition the property by selling his or her interest.	One joint tenant can partition the property by selling his or her joint interest.	One spouse cannot partition the property by selling his or her interest.	Each tenant's share can be conveyed, mortgaged or devised to a third party.
Requires signatures of both parties to convey or encumber.	Requires the signature of all joint tenants to convey or encumber the whole.	Requires signatures of both parties to convey or encumber.	Requires the signature of all tenants to convey or encumber the whole.
Each spouse can devise (will) one-half of the community property	Estate passes to surviving joint tenants outside of probate.	Estate passes to surviving spouse outside of probate.	Upon death the tenant's proportionate share passes to his or her heirs by will or intestacy.
Upon death the estate of the decedent must be "cleared" through probate, affidavit or adjudication.	No court action required to "clear" title upon the death of joint tenant(s).	No court action required to "clear" title upon the first death.	Upon death the estate of the decedent must be "cleared"probate, affidavit or adjudication.
Both halves of the community property is entitled to a "stepped up" tax basis as of the date of death.	Deceased tenant's share is entitled to a "stepped up" tax basis as the date of death.	Both halves of the community property are entitled to a "stepped up" tax basis as of the date of death.	Each share has its own tax basis.

Arizona is a community property state. Property acquired by a husband and wife is presumed to be community property unless legally
specified otherwise. If a married person acquires property as sole and separate, his or her spouse must execute a disclamer deed to avoid the
presumption of community property. Parties may choose to 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 significant legal and tax consequences. Therefore, you are
encouraged to obtain advice from an attorney or other qualified professional.