How You Hold Title to Real Property May Create a Real Life Problem

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If you were a married couple living Arizona, you had three options as how to hold the title to real property in Arizona.

The choices were:

• community property,

• joint tenants with right of survivorship ("JTWROS") and

• tenants in common.

Now, under A.R.S. § 33-431, there is a fourth option - community property with right of survivorship ("CPWROS").

HISTORY

Prior to the existence of CPWROS, if married couples wanted to avoid probate and did not have an estate large enough to use a trust for estate planning purposes, their choice was JTWROS. The language in the Deed to create a JTWROS needs to include specific language in the granting portion requiring vesting to be as JTWROS. Although not required under A.R.S. § 33-431 (B), an acceptance is usually attached to the Deed specifically stating that the grantees are not accepting title to the property as community property, as tenants in common or as CPWROS. This acceptance is signed by the grantees and attached to the Deed for recording.

WHAT CHANGES WITH THE ADDITION OF CPWROS?

Now, if married couples want to avoid probate and their estate is not large enough to use a trust as an estate planning tool, their choice includes holding property as either JTWROS or CPWROS.

Please see full article below for more information.

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