Property Ownership
In California, when a married couple acquires real property during marriage with community funds and takes title as 'community property with right of survivorship,' what is the primary advantage over joint tenancy?
AIt avoids all property taxes
BIt provides a full stepped-up tax basis for the surviving spouse✓ Correct
CIt allows unequal ownership shares
DIt eliminates the need for a deed
Explanation
Community property with right of survivorship combines the survivorship feature of joint tenancy with the full stepped-up tax basis of community property. Upon death, the surviving spouse receives a full step-up in basis on the entire property (not just half), potentially reducing capital gains taxes on a future sale.
Related California Property Ownership Questions
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