Community Property:
• Requires a valid marriage between two persons.
• Each spouse holds an undivided one-half interest in the estate.
• One spouse cannot partition the property by selling his or her interest.
• Requires signatures of both spouses to convey or encumber.
• Each spouse can devise (will) one-half of the community property.
• 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.

Joint Tenancy With the Right of Survivorship:
• Parties need not be married; may be more than two joint tenants.
• Each joint tenant holds an equal and undivided interest in the estate, unity of interest.
• One joint tenant can partition the property by selling his or her joint interest.
• Requires signatures of all joint tenants to convey or encumber the whole.
• Estate passes to surviving joint tenants outside of probate.
• No court action required to “clear” title upon the death of the joint tenant(s).
• Deceased tenant’s share is entitled to a “stepped up” tax basis as of the date of death.

Community Property With the Right of Survivorship:
• Requires a valid marriage between two persons.
• Each spouse holds an undivided one-half interest in the estate.
• One spouse cannot partition by selling his or her interest.
• Requires signatures of both spouses to convey or encumber.
• Estate passes to the surviving spouse outside of probate.
• No court action required to “clear” title upon the death of the joint tenant(s).
• Both halves of the community property are entitled to a “stepped up” tax basis as of the date of death.

Tenants in Common:
• Parties need not be married; may be more than two tenants.
• Each tenant in common holds an undivided fractional interest in the estate. Can be disproportionate; e.g., 20% and 80% and 60% and 40%, etc.
• Each tenant’s share can be conveyed, mortgaged, devised to a third party.
• Requires signatures of all tenants to convey or encumber the whole.
• Upon death, the tenant’s proportionate share passé to his or her heirs by will or intestacy.
• Upon death, the estate of the decedent must be “cleared” through probate, affidavit or adjudication.
• Each share has its own tax basis.

Sole and Separate:
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 presumption of community property. Parties may choose to hold title in the name of and 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 tax consequences. Therefore, you are encouraged to obtain advice from an attorney or other qualified professional.