When it comes to passing along property or interests in property in California, families and individuals in groups can adopt several efficient strategies.
Understanding these options can help to make informed decisions about property management and inheritance.
Create a living trust
One of the most effective ways to pass property involves setting up a living trust. This approach allows the property owner to transfer ownership of their assets into a trust. The person setting up the trust, known as the trustor, can manage the assets as the trustee while they are alive. After their passing, the property quickly transfers to the beneficiaries named in the trust without going through the lengthy and costly probate process.
Joint tenancy with right of survivorship
Another strategy in estate planning involves holding property in joint tenancy with the right of survivorship. This method means that if one owner dies, their interest in the property automatically passes to the surviving owner(s) without the need for probate. It is important to have clear documentation to establish joint tenancy from the start.
Community property with right of survivorship
For married couples or registered domestic partners in California, holding property as community property with the right of survivorship combines the benefits of joint tenancy with the advantages of community property. This method allows property to pass directly to the surviving spouse or partner without probate while also allowing for tax benefits related to community property.
These methods provide various options to suit different needs and preferences, facilitating a smoother transition of real estate.
