Posted by Jimmy on September 19, 2006 at 07:09:47:
I have studied the CP laws of CA and TX, but not FL. There is a presumption that property acquired during marriage is CP. The presumption is rebuttable. One of the things that can override the presumption is taking title as joint tenants with a right of survivorship. This creates a different ownership arrangement.
Many realtors would automatically select JTWROS in California, because it avoids probate. True enough, but only on he first death. and the first death of married spouses almost never requires a full blown CA probate, because of the spousal set-aside rules.
California introduced a new form of ownership a few years back: CPWROS. it provides all the benefits of CP, and also avoids probate on the first death (and avoids the spousal set-aside stuff, too). but it does not solve the second death probate.
Posted by Bonnie on September 17, 2006 at 16:53:11:
My husband and I have an AB living trust. We have 5 investment properties in the trust.The lawyer did not put our homestead in the trust. Was planning on asking him the reason but wanted to get another professional opinion first. We live in Florida. Thank you in advance.
Posted by Jimmy on September 18, 2006 at 07:07:24:
very common arrangement.
one of the benefits (and there are many)of having a living trust is avoiding probate. but the assets need to be titled in the name of the trust. this includes your residence.
before you execute a deed, take a minute and check to see how you are currently holding title. if you and your husband hold as JTWROS, you will want to add a small phrase to your deed:
Grantee: Mom and Dad, husband and wife, as joint tenants
GrantOr: Mom and Dad, co-trustees of the AB Living Trust, dated x/y/zzzz. AS COMMUNITY PROPERTY.
Doing this will get you the full benefit of IRC Section 1014(b)(6), which steps up both halves of community property on the first spouse’s death.