Community property refers to all property owned by a married couple (husband and wife or domestic partners) during their marriage. In the event of a death, the Community Property with Right of Survivorship vesting will automatically transfer the property to the surviving spouse without probate. Note: Since there is right of survivorship, the property cannot be willed to anyone else. Upon death the property will automatically belong to the surviving spouse.
Example: Julie and John are married and recently purchased a new home. The home is owned as community property with right of survivorship. John passes away due to a car accident. Julie will now receive John’s 50% interest of the property automatically without having to deal with costly probate.
BEWARE: What happens if both Julie and John die in that car accident or Julie passes away within a few weeks after John died? Since the property is not vested in their trust, it will go through probate.
SOLUTION: If you currently hold title as community property with right of survivorship you can transfer your interest into your TRUST to AVOID PROBATE! Call us today to find out how to protect your property from probate!
In this six part series, I provide an overview of the most common vestings (how you hold title) and whether or not your property will avoid probate. In Part 3 I explain community property with right of survivorship. Do you know if your home is protected from probate? There are many ways to hold title to your home, farm land, investment property and any other type of real property, but will it go to probate when you pass away? Read More on other ways to hold title…
Continue to Part 1 – SOLE OWNERSHIP
Continue to Part 2 – JOINT TENANCY
Continue to Part 3 – COMMUNITY PROPERTY WITH RIGHT OF SURVIVORSHIP
Continue to Part 4 – COMMUNITY PROPERTY
Continue to Part 5 – TENANTS IN COMMON
Continue to Part 6 – LIVING TRUST
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Probate is a special court that supervises and determines how a deceased person’s estate is to be distributed. The probate procedure may take years to complete. Probate can become an expensive and time consuming process that can be avoided by creating a Living Trust or adding a Joint Tenant. Ultimately, however, the best solution to avoid probate is to vest your real property in your Living Trust.