Taking Title in Arizona
The Different Ways to Take Title in Arizona
| Community Property | Joint Tenancy w/Right of Survivorship | Community Property w/Right of Survivorship | Tenancy in Common | Sole and Separate |
| Requires a valid marriage between two persons. | Parties may need not be married; may be more than two joint tenants. | Requires a valid marriage between two persons. | Parties may not need to be married; may be more than two tenants in common. | See “Note” below this table for more details. |
| Each spouse holds an undivided one-half interest in the estate. | Each joint tenant holds an equal and undivided interest in the estate, unity of interest. | Each spouse holds an undivided one-half interest in the estate. | Each tenant in commonholds an undivided fractional interest in the estate. Can be disproportionate. e.g. 20%-8% or 60%-40% | See “Note” below this table for more details. |
| One spouse cannot partition the property by selling his or her interest. | One joint can partition the property by selling his or her joint interest. | One joint tenant can partition the property by selling his or her joint interest. | Each tenant’s share can be conveyed, mortgaged or devised to a third party. | See “Note” below this table for more details. |
| Requires signatures of both spouses to convey or encumber. | Requires signatures of all joint tenants to convey or encumber the whole. | Requires signatures of both spouses to convey or encumber | Requires signatures of both spouses to convey or encumber | See “Note” below this table for more details. |
| Each spouse can devise (will) one-half of the community property. | Estate passes to surviving joint tenants outside of probate. | Estate passes to surviving joint tenants outside of probate. | Upon death the tenant’s proportionate share passes to his or her heirs by will or intestacy. | See “Note” below this table for more details. |
| Upon death, the estate of the descendent must be “cleared” through probate, affidavit or adjudication. | No court action required to “clear” title upon the death of joint tenant(s). | No court action required to “clear” title upon first death. | Upon death, the estate of the descendent must be “cleared” through probate, affidavit or adjudication. | See “Note” below this table for more details. |
| Both halves of the community property are entitled to a “stepped up” tax basis as of the date of death. | Deceased tenant’s share is entitled to a “stepped up” tax basis as of the date of death. | Both halves of the community property are entitled to a “stepped up” tax basis as of the date of death. | Each share has it’s own tax basis. | See “Note” below this table for more details. |
Note: Arizona is a community property state. Property acquired by husband and wife is presumed to be community property unless legally specified otherwise. Title may be held “Sole and Separate.” If a married person acquires title as “sole and Separate”, his or her spouse must execute a disclaimer deed to avoid the presumption of community property. Parties may choose to hold title in the name of an entity, e.g., a corporation; a limited liability company;a partnership (general or limited); or a trust. Each method of taking title has certain significant legal and tax consequences. Therefore, you are encouraged to obtain advice from an attorney, CPA or other qualified professional.
