Property OwnershipQuestion 13 of 120

A married couple wants to hold title so the survivor automatically owns the whole property and also receive a favorable tax basis step-up on the entire property at the first death. They should consider:

a.Tenancy in common
b.Community property with right of survivorship
c.Joint tenancy in severalty
d.Tenancy at sufferance

Explanation

Community property with right of survivorship combines the survivorship feature with community property tax treatment, allowing a full step-up in basis on both halves at the first spouse's death. California created this form to give couples both benefits. Ordinary joint tenancy provides survivorship but only a step-up on the decedent's half.

Law Reference: CA Civil Code

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