A little help please. Jointly owned property

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A little help please. Jointly owned property...

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Anonymous

Posted 6/6/2007 3:34:35 PM

I have now had an argument with someone in my office. It was always my understanding that if property between two spouses is titled "Joint Ownership with Right of Survivorship" that only half of the property gets a step up in basis.

I'm aware of the other title in California "Community Property with Right of Survivorship" where both halves do get a step up and there is no probate.

This person is now claiming that if title was never changed from Joint Ownership with Right of Survivorship, that both halves still get a step up in basis in California.

BTW this isn't property that was separate property of one spouse and was retitled before 1977.

Do both halves of the jointly owned property get stepped up, or does only the deceased spouse's share get stepped up?

Post #395

Richard Cassidy

Posted 6/7/2007 2:43:58 PM

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Last Login: 6/25/2007 3:50:45 PM
Posts: 16, Visits: 92

Well, I think you are right. The survivor's share of the joint property is not acquired from a decedent. The survivor's share of community property is generally treated as acquired from the decedent under section 1014(b)(6) and so gets the step up.

There may be differences for the joint tenancy if it was created before 1977. In that case I think you have to look at how much consideration was provided by each spouse to see what percentage of the property is included in the estate. Then that percentage would get the step up.

Hopefuly someone will step in here if I have this wrong.

Post #396

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