Property Ownership

Arizona allows married couples to hold title as 'community property with right of survivorship.' The primary advantage of this form of ownership is:

AIt allows either spouse to sell the property without the other's consent
BIt provides a full stepped-up tax basis and avoids probate upon the first spouse's death✓ Correct
CIt limits each spouse's liability to their share of the property
DIt requires a partition action to separate interests

Explanation

Community property with right of survivorship provides both a full stepped-up income tax basis on the entire property at the first spouse's death AND passes the property directly to the surviving spouse outside of probate.

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