Hold Title

Different ways to Hold Title in Arizona

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

Note: Arizona is a community property state. Property acquired by a husband and wife is presumed to be community property unless legally specified. Title may be held as "Sole and Separate". If a married person acquires title as sole and separate property, his or herspouse must execute a disclaimer 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 certain legal and tax consequences. Therefore, you are encouraged to obtain advice from an attorney or other qualified professional.

Courtesy of First Arizona Title Agency

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