Property Ownership

In California, when a married couple holds title as 'community property with right of survivorship,' what happens when one spouse dies?

AThe property goes through probate
BThe surviving spouse automatically receives the deceased spouse's share✓ Correct
CThe property passes to the deceased spouse's children
DThe property reverts to the state

Explanation

Community property with right of survivorship is a California title-holding method that allows the surviving spouse to automatically inherit the deceased spouse's half without probate, while retaining the favorable tax treatment of community property (full stepped-up basis).

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