The main benefit of this new way of holding title is as follows. Primarily, the benefit of community property for a husband and wife allows that if one of the spouses dies, and leaves his/her half to the other person, the entire property would be revalued for the purpose of basis to the value of the property at the time of death.
So if they had purchased it for $10,000 and at the time of death, the value was $100,000 the decedents portion of the property could be inherited by the other person, and the entire property would be revalued at $100,000 for tax basis purposes. BUT – probate may be involved.
With Community Property with the Right of Survivorship, you get the best of both worlds. There is automatic survivorship without the need to probate AND the entire property is stepped up in basis value. This can become significant for estate planning because you not only avoid the cost of probate, but also, since the capital gains are based on the difference between basis and sales price – having a much higher basis can create significant tax savings.
If you already hold your property as joint tenants – fear not – it’s very simple to deed the property, from the owners in joint tenancy, back to yourselves as owners in community property with right of survivorship.
http://www.trulia.com/blog/jeri_creson/2009/09/holding_title_as_community_property_with_right_of_survivorship
Hope you find this information helpful!
Connie Dello Buono ,
Business Owner and wealth strategist for tax-free retirement
Health and Finance Coach
www.nationallifegroup.com for investment- retirement-savings plan with max cash accumulation, tax free and risk-free with living benefits
1708 Hallmark Lane San Jose CA 95124
Your referral is much appreciated if you know someone who wants to be protected in the future should they need access to funds in their pocket, to up to $1.5M during health threats such as cancer,stroke or disability. We call these living benefits , now added free at no cost with their investment-index-strategy in an IUL with no market risk and tax free. Liquidity any time, in form of loan without returning it but must maintain 10% of the cash accumulation to be tax free (IRS code 7702).
Published by connie dello buono
Connie Dello Buono is based in Sunnyvale California. Her first ebook is about women's health, Birthing Ways Healing Ways and her recent one is about cancer prevention, Curated Healing Ways. She had helped women have holistic childbirth as childbirth educator, founded Motherhealth, to serve seniors in the bay area with holistic caregivers and blogs at www.clubalthea.com with more than 10,000 health and finance related posts.
Connie trains her own caregivers, which are the favorites of most bay area seniors who are home bound and alone.
She is active in the rehab and nursing facilities, volunteering on music and movement for seniors.
She is a member of Lion's club and offered scholarships to students in the Philippines.
She is active at churchinsunnyvale.us and has Fridays Bible home study in Sunnyvale using the recovery version of the Bible , free at biblesforamerica.us
She loves dancing and teaching and her courses can be found at
https://teachclub.com/@thriveafter60
She is California Life Insurance licensed providing life insurance for older adults with health issues and helping women retire safely with income for life.
at menloassetca.com , she helps with 401k rollover.
3 Benefit plans
- Mortgage protection using term life insurance to pay for mortgage balance in event of death
- Final Expense plan using Single Issue Whole Life Insurance, with cash back, disability benefit and guaranteed in the presence of health issues
- Fixed Index Annuity retirement plan for safe, accessibility, less fees, less taxes, avoids probate as it goes directly to beneficiaries, rate of return with no downside market participation.
She brings compassion and understanding to the needs of her clients, bringing holistic approach in health and life insurance. Her goal is to free families from worries especially during covid with caregivers and life insurance in the presence of health issues, especially for women.
She can be reached at 408-854-1883 , motherhealth@gmail.com
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