California vesting tool
How will you hold title?
How your name appears on the deed affects who inherits, what happens at a death and how taxes work. Answer five questions to see the options that fit and what to ask your attorney and CPA.
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- Educational only. We don’t choose for you
Question 1 of 5
Options to explore
These fit your answers. Compare them below, then decide with your attorney and CPA.
Questions to bring to your attorney and CPA
What title will likely ask for
General information, not legal or tax advice. Priority Title can’t tell you how to hold title.
Vesting types
Seven ways to hold title
Open any option for how it works, what to watch for and what to ask.
Spouses and registered domestic partnersCommunity property with right of survivorshipEach spouse owns half as community property, and when one dies the survivor automatically owns it all.
- Survivorship
- Yes, automatic
- Leave it by will
- No, survivorship controls
- Shares
- Equal (community property)
- Who can use it
- Spouses and registered domestic partners only
Good to know
- California created this option in 2001 to combine features of joint tenancy and community property. [verify]
- After a death, the survivor typically records an affidavit of death of spouse with a certified death certificate.
- It doesn’t cover what happens after the second death. Many couples pair it with a trust or other estate plan.
Ask your attorney or CPA about
- How each option is taxed after a death (ask your CPA)
- How it fits with a will or trust (ask your attorney)
Spouses and registered domestic partnersCommunity propertyEach spouse owns half, and each can leave their half to anyone by will.
- Survivorship
- No
- Leave it by will
- Yes, each spouse’s half
- Shares
- Equal (community property)
- Who can use it
- Spouses and registered domestic partners only
Good to know
- California is one of nine community property states. [verify]
- A deceased spouse’s half passes under their will, or by law if there is none.
- A court process may be needed to transfer a deceased spouse’s half unless the property is in a trust.
Ask your attorney or CPA about
- How it compares with community property with right of survivorship for your plans
- Tax treatment after a death (ask your CPA)
Two or more peopleJoint tenancyTwo or more people own equal shares. When one dies, their share passes to the surviving owners.
- Survivorship
- Yes, automatic
- Leave it by will
- No, survivorship overrides a will
- Shares
- Must be equal
- Who can use it
- Anyone, including spouses
Good to know
- A will can’t override joint tenancy survivorship.
- For spouses, tax treatment after a death can differ from community property. Ask your CPA before choosing.
Ask your attorney or CPA about
- For spouses: how joint tenancy compares with the community property options (ask your CPA)
- Whether automatic survivorship matches your wishes
Watch for: one owner can end it
- A joint tenant can end the joint tenancy for their share by recording a deed, without the other owners’ consent.
- If that happens, survivorship no longer applies to that share.
Two or more peopleTenancy in commonTwo or more people own shares, equal or not. Each can sell or leave their own share.
- Survivorship
- No
- Leave it by will
- Yes
- Shares
- Any split, such as 50/30/20
- Who can use it
- Anyone
Good to know
- Common for investors, business partners, and family members or friends buying together.
- A deceased owner’s share passes by will or by law, not to the other owners.
Ask your attorney or CPA about
- A co-ownership agreement: what happens if one owner wants out, dies or can’t pay
- How shares should be split
Watch for: a forced sale
- Any co-owner can ask a court to divide or sell the property, even if the others don’t want to.
- A written co-ownership agreement, drafted by an attorney before closing, can set the ground rules.
One personSole ownershipOne person owns the property alone: a single or unmarried person, or a married person as their sole and separate property.
- Survivorship
- No
- Leave it by will
- Yes
- Shares
- 100% to one person
- Who can use it
- One person
Good to know
- Without a trust or other plan, the property may need to go through probate at the owner’s death.
Ask your attorney or CPA about
- If married: the effect on community property rights (ask your attorney)
- A plan for the property at your death, such as a trust
Watch for: married buyers taking title alone
- The spouse who isn’t on title is usually asked to sign a quitclaim or interspousal deed.
- This is easy to miss. Flag it when the order opens, not at signing.
Any ownerLiving trustThe trustee of your revocable living trust holds title, for example “Jane Smith, Trustee of the Smith Family Trust.”
- Survivorship
- Per the trust’s terms
- Leave it by will
- The trust decides who inherits
- Shares
- Per the trust
- Who can use it
- Anyone with a trust
Good to know
- If the owner can’t act, the successor trustee can step in under the trust’s terms.
- Title will usually ask for a certification of trust.
Ask your attorney or CPA about
- Setting up or updating a trust (estate planning attorney)
- Whether your lender has rules about lending to a trust
Watch for: the trust that was never funded
- Owners often say they have a trust, but the property is still in their own names.
- Ask early: “Is this property titled in the name of your trust?” Then check the vesting deed.
A companyLLC, corporation or partnershipA company owns the property, and whoever its documents authorize signs for it.
- Survivorship
- Not applicable
- Leave it by will
- Ownership of the company passes, not the property
- Shares
- Per the company documents
- Who can use it
- A legally formed company
Good to know
- Common for investment and commercial property.
- Title will ask for formation documents and proof of who can sign.
Ask your attorney or CPA about
- Liability, tax and lending effects (attorney and CPA)
- Who is authorized to sign for the company
Watch for: financing
- Many residential loans aren’t available to an LLC. Confirm with the lender before the contract is written.
- Moving a property you already own into a company can affect your loan and taxes. Talk to an attorney first.
Related: transfer on death deed
- A revocable deed that names who receives the property at the owner’s death, without probate.
- Limited to residential property of one to four units. [verify]
- California’s law is currently set to expire on January 1, 2032, unless extended. [verify]
- Before relying on one for a sale or refinance after a death, ask your title officer what will be required.
Compare
Side by side
A quick reference for client conversations. Tax treatment differs by option, so ask a CPA.
| Option | Who can use it | Survivorship | Probate at a death | Leave it by will | Shares |
|---|---|---|---|---|---|
| Community property with right of survivorship | Spouses and registered domestic partners only | Yes, automatic | Generally not needed at the first death | No, survivorship controls | Equal (community property) |
| Community property | Spouses and registered domestic partners only | No | May be needed unless in a trust | Yes, each spouse’s half | Equal (community property) |
| Joint tenancy | Anyone, including spouses | Yes, automatic | Generally not needed when an owner dies | No, survivorship overrides a will | Must be equal |
| Tenancy in common | Anyone | No | May be needed for a deceased owner’s share | Yes | Any split, such as 50/30/20 |
| Sole ownership | One person | No | May be needed unless in a trust | Yes | 100% to one person |
| Living trust | Anyone with a trust | Per the trust’s terms | Generally avoided if the trust holds title | The trust decides who inherits | Per the trust |
| LLC, corporation or partnership | A legally formed company | Not applicable | The company continues | Ownership of the company passes, not the property | Per the company documents |
Scenarios
What we see at the closing table
Situations title companies run into, and what would have helped. Details are composites.
The couple who never askedMarried buyers · Vesting choice
A married couple took title as joint tenants because it sounded simple. Years later, after one spouse died, the survivor learned that how title was held affected the taxes when she sold.
Married buyers should know about all their options, including the two community property options, and ask a CPA how each is taxed before choosing.
The trust that wasn’tSellers · Trust not funded
Sellers said at the listing appointment that “everything is in the trust.” Shortly before closing, the title search showed the property was still in their personal names. A new deed had to be prepared, signed, notarized and recorded.
When anyone mentions a trust, ask right away whether the property is titled in the trust, and check the deed early.
Three partners, one holdoutInvestors · Tenancy in common
Three investors bought a rental as tenants in common. Two wanted to sell; the third refused and went to court. The property was sold on terms none of them chose, and legal costs ate into the returns.
Unrelated co-owners should have an attorney draft a co-ownership agreement before closing.
“Just add my kid to title”Owners · Adding someone to title
A longtime owner added an adult child to title “to make things easier.” No one flagged the property tax effects, and the transfer led to a reassessment and a much higher tax bill.
Adding anyone to title can affect property taxes, gift taxes, loans and creditor exposure. Always talk to an attorney and CPA first.
The LLC at the closing tableInvestor · Financing
An investor planned to close in the name of a new LLC. The lender wouldn’t fund to the LLC, and the deal nearly fell apart while the buyer scrambled.
Any mention of an LLC should start a conversation with the lender and an attorney before the contract is written.
Agent checklist
You don’t need to be the legal expert.
You need to know enough to say, “Let’s get your attorney on this before you decide.”
Do
- Treat vesting as a legal decision, not a closing formality
- Send clients to an attorney and CPA before they decide, every time
- Ask anyone with a trust: “Is this property titled in the name of your trust?”
- Make sure married buyers know about all their options before they choose
- Confirm the spouse’s quitclaim when a married buyer takes title alone
- Suggest a co-ownership agreement when unrelated people buy together
- Call your Priority Title rep or title officer early, before problems develop
Don’t
- Tell a client which vesting to choose. That’s legal and tax advice
- Assume clients understand the words on their deed
- Assume a trust means the property is in the trust
- Tell a client that adding someone to title is simple
- Let a client form an LLC before checking the financing
Prop 19: adding or passing property to family
Since 2021, Proposition 19 limits when a home can pass from parent to child without a property tax reassessment. Generally the home must be the parent’s primary residence and become the child’s, and there is a value cap that is adjusted over time. Any change to title within a family should go to an attorney and CPA first. Prop 19 details from the Board of Equalization (opens in a new tab)
Vesting question on a file? Your title officer can tell you what title will need for the vesting your client chooses.
General information, not legal or tax advice. Adapted from Priority Title’s California vesting tool.