Dear Michael: What is the difference between holding title as “Community Property” and “Community Property with right of survivorship”?
Answer: Spouses (and only spouses) may own real estate as community property. Community property carries no automatic right of survivorship.
If Steve and Julie own their home as community property, they have created 50 percent -50 percent interests, but without a right of survivorship. Each may pass on his/her share (50 percent) of the home to whomever they name in their will. Community Property with Right of Survivorship which was established July 1. 2001 provides for a right of survivorship for a married couple while owning a home or other real estate as community property.
This would mean that when one spouse dies, the other spouse will own the home outright (assuming proper filing is done) and receive a “stepped-up basis” for the entire home (if it has appreciated in value) for capital gains tax purposes.
Typically, this would be a deed signed by the couple granting to themselves their home as community property with right of survivorship. Please consult with a real estate attorney for which way you should hold title.
Dear Michael: I think my agent is withholding information from me. I feel he is not representing me and my best interest. Can you tell me what I can do about it?
Answer: Have a talk with you agent, you may be mistaking unless you have proof and are absolutely sure that he has been acting unethically.
If you are not able to resolve your discrepancy with yours agent and the problem persists, contact the Broker or office manager and let him/her know what is going on. If you don’t have trust in your agent, ask the Broker to transfer your listing to a different agent.
This way the listing stays with the Broker avoiding any complication that could result in a lawsuit for cancellation of contract. It’s a good idea to research an agent’s track record before hiring him/her to represent you in the biggest asset you own (your home). Ask for references from a relative and friends and make sure the agent is familiar with your area.
Dear Michael: My parents want to give me their home. What is the best way for them to do so? Can the transfer be done without taxes?
Answer: There are several options you may choose from, the best one depends on your personal situation. Is the property a Fee Simple Estate (free and clear of any mortgages)? If not how much is owed, what type of loan is it?
How many tears are left on the note? From your question it is not possible to give you the correct answer; I recommend you seek the advice of an accountant for the best tax method for your family.
Some of the methods to transfer are as follows: Quit claim deed, you can just be added to the property as a joint tenant and then you gain full ownership after they have passed on. You can create a trust and be added to the trust as a beneficiary, you can also have it done as a purchase, but this will create a tax consequence.
Consult your accountant for further evaluation.
Michael Kayem is a Realtor with Re/max Estate Properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or email them to him at: homes@agentmichael.com