Joint Tenancy Definition With Spouse In Maricopa
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Joint tenants also own an undivided interest in property. The main difference between joint tenants and tenants-in-common is that, upon the death of a joint tenant, that co-owner's interests are extinguished and the surviving co-owner(s) receive the property.
The key difference is in post-mortem property sale taxation. Joint tenancy triggers capital gains tax on property sales after a spouse's death. CPWROS exempts it. Additionally, joint tenancy is open to anyone, while community property is usually for married couples.
In joint tenancy, the deed of trust establishes equal rights for all co-owners and includes a right of survivorship. On the other hand, in tenancy in common, the deed of trust clarifies that each co-owner has separate shares of the property with no right of survivorship.
Joint tenants have equal property ownership, share profits and liabilities, and often have a right of survivorship. Tenants in common can have unequal shares, lack a right of survivorship, and can pass their share to chosen beneficiaries.
Further tenancy in common allows parties to hold unequal shares of property interest. Joint tenancy requires each co-owner to hold equal shares of property. Further, co-owners must transfer the deed at the same time. In this sense, joint tenancy is rigid compared to tenancy in common.
Joint tenancy is most common among married couples because it helps property owners avoid probate. Without joint tenancy, a spouse would have to wait for their partner's Last Will to go through a legal review process—which can take months or even years.
Tenants in common gives you more protections and you can specify in a deed of trust what you would want to happen in the event of relationship breakdown (eg if one of you has first dibs to buy the other out, or a time limit on doing so etc) which is definitely better to decide now whilst you still like each other!
Joint tenants in common are usually referred to as JTIC, and it usually refers to property owned where rights of survivorship do not apply. It means that each individual owns a specific part of the property, and upon their passing, the other individuals will not have a right of survivorship to that specific portion.
If you prioritize ease of transfer upon death and want to bypass probate, joint tenancy could be the better option. Conversely, if you aim for equal ownership and tax advantages, community property ownership may suit your needs better.
Separate property includes assets acquired before the marriage, inheritances, and gifts designated for one spouse during the marriage. Comprehending these classifications forms the foundation for navigating the complex landscape of community property laws in Arizona.
