Foreign Buyers Guide to Buying a Home in Arizona USA Foreign Buyer | Page 8

Ways to take title in Arizona

How To Hold Title ?
You should inform your escrow officer and lender as soon as possible of how you wish to hold title to your home and exactly how your name ( s ) will appear on all documents . This allows your lender and title company to prepare all documents correctly . ( Changes later , such as adding or deleting an initial in your name , can delay your closing .) You may wish to consult an attorney , accountant or other professional before deciding how to hold title .
COMMUNITY
PROPERTY
JOINT TENANCY
WITH RIGHT
OF SURVIVORSHIP
COMMUNITY
PROPERTY WITH RIGHT
OF SURVIVORSHIP
TENANCY
IN COMMON
Requires a valid marriage between two persons .
Parties need not be married ; may be more than two joint tenants .
Requires a valid marriage between two persons .
Parties need not be married ; may be more than two tenants in common .
Each spouse holds an undivided one-half interest in the estate .
Each joint tenant holds an equal and undivided interest in the estate , unity of interest .
Each spouse holds an undivided one-half interest in the estate .
Each tenant in common holds an undivided fractional interest in the estate . Can be disproportionate , e . g ., 20 % and 80 %; 60 % and 40 %; 20 %, 20 %, 20 % and 40 %; etc .
One spouse cannot partition the property by selling his or her interest .
One joint tenant can partition the property by selling his or her joint interest .
One spouse cannot partition the property by selling his or her interest .
Each tenant ’ s share can be conveyed , mortgaged or devised to a third party .
Requires signatures of both spouses to convey or encumber .
Requires signatures of all joint tenants to convey or encumber the whole .
Requires signatures of both spouses to convey or encumber .
Requires signatures of all tenants to convey or encumber the whole .
Each spouse can devise ( will ) one-half of the community property .
Estate passes to surviving joint tenants outside of probate .
Estate passes to the surviving spouse outside of probate .
Upon death the tenant ’ s proportionate share passes to his or her heirs by will or intestacy .
Upon death the estate of the decedent must be “ cleared ” through probate , affidavit or adjudication .
No court action required to “ clear ” title upon the death of joint tenant ( s ).
No court action required to “ clear ” title upon the first death .
Upon death the estate of the decedent must be “ cleared ” through probate , affidavit or adjudication .
Both halves of the community property are entitled to a “ stepped up ” tax basis as of the date of death .
Deceased tenant ’ s share is entitled to a “ stepped up ” tax basis as of the date of death .
Both halves of the community property are entitled to a “ stepped up ” tax
Each share has its own tax basis .
Note : Arizona is a community property state . Property acquired by a husband and wife is presumed to be community property unless legally specified otherwise . Title may be held as “ Sole and Separate .” If a married person acquires title as sole and separate , his or her spouse must execute a disclaimer deed to avoid the presumption of community property . Parties may choose to hold title in the name of an entity , e . g ., a corporation ; a limited liability company ; a partnership ( general or limited ), 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 .