Property OwnershipIntermediateCalifornia Exam

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, as typically recorded in a California deed
BThe surviving spouse automatically receives the deceased spouse's shareCorrect
CThe property passes to the deceased spouse's children, consistent with common law property ownership principles
DThe property reverts to the state, per standard California real property conventions

Why The surviving spouse automatically receives the deceased spouse's share Is Correct

Answer B: The surviving spouse automatically receives the deceased spouse's share

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).

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

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State-Specific Concepts

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