How to Hold Title To Real Property
May 03, 2022
NOELLE MINTO, ESQ.
Noelle Minto: I’m often asked by individuals how they should hold title to their real property.
A lot of people have a misconception of what various title-holding manners will do for them. Some of the most common mistakes I see are individuals saying they wish to hold the title as a joint tenant, thinking that they’re getting around doing estate planning documents, and making it convenient for the other joint tenant in the event of death. However, while some of that might be true, a major issue with holding property in joint tenancy with a spouse is that when one spouse dies, only half of that property will be stepped up at death.
Death and Property Title Issues
When someone passes away, we are allowed to get a step up in basis on the assets that we hold in our name when we die. So rather than holding property in trust as Community Property, where you get a complete step up on both deaths, you will only get a step up in the value of the property to the current market value with half of the property when held in joint tenancy with your spouse.
Another issue is individuals who will put their children on title as joint tenants, and they think they’re doing this to make it convenient for the family. But guess what, that inheriting family member who was on as joint tenant just for convenience, all of a sudden is 100% legal owner of that property. If that’s not the intent, that’s going to cause family discord and maybe even litigation amongst family members. It’s essential to evaluate how you’re currently holding the title.
There are laws out there that really disallow the tax benefit of holding property as joint tenants when looking to get that step-up in basis. As many of us in the state of California are looking to receive as we have significant appreciation in property values from the time we purchase to the time we pass.
To assess your case, make an appointment with our attorneys at either location; Riverside or Tustin, California.
Testimonials
John Schroeder was brought on to work on my case with Samantha and they updated/collaborated with Noelle. Noelle, Samantha and John are all patient, direct and very personable. Their knowledge and professionalism are exceptional. NM Law was successful in achieving a Settlement Agreement under difficult circumstances amongst people with little trust in one another. Thankfully we did not have to bear the cost of going to trial, however, I have complete confidence that NM Law would have prevailed if we had.
I highly recommend NM Law. I look forward to working with them again, but this time to plan my estate.
I want to thank you and your staff for the courtesy extended to us during our family's pending emergency deadline.
Mr. O'Grady spoke to my brother and gave us his best recommendation regarding my father's estate.
It is really hard to speak, and even harder to "plan" generational wealth with a parent in terms of assets, intentions, and mortality, but it is a necessary conversation to have, if only to lessen the unfairness of life that eventually catches up to all of us.
Our family tried to bring justice to my father's death within this probate process and found no justice, this system must be changed, so that a fairness is inherit within this system and not just a scam—lots of hard lessons to be learned from a broken probate process.
In either case, thank you again for giving our family the attention and direction we sought. The adage is true, not all lawyers are the same. Looking forward to working with your office in the near future, as we don't want to repeat this experience with our Mom.
Gracias,
Abraham
We highly recommend NM Law for your estate planning needs.
I highly recommend NM Law.
Charities We Support
We dedicate pro bono time, volunteer services, and a percentage of our gross revenue to these organizations. In 2023, we sponsored a refugee family of five to come to the United States and start a new life.
Each year our law firm decides as a group which charities to assist with our time, money, and expertise. Please feel free to click on any of the charities below and make a donation of your own.
