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Community property is a method of co-ownership for married
persons only. Ownership interests are equal and both co-owners must join
in transferring or encumbering the property. Upon the death of one spouse,
the deceased spouse's interest will pass by intestate succession or
through a will.
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This is a method of co-ownership
that allows a married couple to hold title as husband and wife while
providing for succession outside of probate on the death of either spouse.
Each spouse holds an undivided one-half interest in the estate. It requires
signatures of both spouses to convey or encumber. Both halves of the
community property are entitled to a "stepped up" tax basis as of the date
of death. (Effective January 1, 1995/ARS 33-341). |
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Joint tenancy is a method of
co-ownership that gives title to the property to the last survivor. There is
one title to the whole property, and ownership interests cannot be divided.
Title can be acquired by any number of persons or a husband and wife. Upon a
co-owners death, his or her interest ends and is transferred by operation of
law to survivor(s). The joint tenancy may be broken if a co-owner conveys
his or her interest without the other(s) or if a creditor acquires the
interest through an execution sale.
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This is a method of co-ownership where parties do not have
survivorship rights and each owns a specific undivided interest in the
entire title. Each co-owner has a separate title to his interest, and can
transfer or encumber his or her interest without the other co-owners.
Ownership can be divided into any number of interests, equal or unequal, any
number of persons, or a husband and wife can acquire title. Upon a
co-owner's death, his or her interest passes by will or succession. A
co-owners interest can be sold through an execution sale and the creditor
then becomes a tenant in common. |
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This method of ownership is for a married person dealing with
their sole and separate property. A husband or wife can acquire title as
sole and separate if the property is owned by either spouse before marriage
or acquired after marriage by gift, devise, decent or specific intent. If a
married person acquires title as sole and separate property, his or her
spouse must execute a disclaimer deed to avoid the presumption of community
property. (If you are divorced, the title company may request proof of your
divorce to verify legality of this method of ownership). |
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Title may be taken in the name of a corporation provided the corporation is
duly formed and in good standing in the state of its incorporation. |
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Title may be taken in the name of a general partnership
duly formed under the laws of the state of the formation of the partnership.
A partnership is defined as a voluntary association of two or more persons
as co-owners in a business for profit. |
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A partnership formed by two or more persons under the laws
of Arizona or another state and having one or more general partners and one
or more limited partners. A certificate of limited partnership must be filed
in the Office of the Secretary of State, a certified copy of which must be
recorded. |
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*Note: Arizona is a community property state. Property
acquired by a husband and wife is presumed to be community property unless
legally specified otherwise. Parties may choose to hold title in the name of
a limited liability company or a trust. Each method of taking title has
certain significant legal and tax consequences. Therefore, you are
encouraged to obtain advice from an attorney or other qualified
professional. |
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