There is no single "best" way to take title to real estate. How you take title to your real property has a significant effect upon your estate plan for better or worse. The "best" way to take title is usually the one which, after careful consideration most fully implements the desired distribution of your estate with the least cost and inconvenience. In California there are at least six different ways for individuals to hold title to property: as separate property, as tenancy in common, as community property, as a joint tenancy, community property with right of survivorship, or as Trustee of a living, revocable trust.

It is very important to consider which alternative best carries out your intent regarding how and to whom your assets should be distributed upon your death. Choosing the right form of title for you requires an understanding of these alternatives in at least six areas: federal estate taxes, federal gift taxes, federal and California income taxes, whether the property can be transferred by will, whether the property must go through probate upon the death of the property owner, and whether the property will be subject to creditor's claims on the death of the property owner.

By taking title as a trustee of your living trust, probate and estate tax avoidance can be accomplished without creating potential tax, creditor, distribution, management or other problems that can arise with a joint tenancy. Before you decide how to take title to your newly purchased property, please consult your attorney or a financial planning professional for advice.

DISCLAIMER: The above is intended as general information only. It does not constitute legal advice or a legal opinion regarding your particular situation. Only an attorney who has reviewed all of the pertinent facts and circumstances can render a competent legal opinion for your paticular situation. For individual planning and drafting of documents appropriate for you, see your estate planning attorney.

© Jennifer P. Cody, 2004