A short guide on how to take title in Arizona

Arizona is a community property state. Property acquired by a husband and wife is presumed to be community property unless legally specified otherwise. Title may be held as '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.

Community Property with the Right of Survivorship
· Requires a valid marriage between two people.

· Each spouse holds an undivided one-half interest in the estate.

· One spouse cannot partition the property by selling his or her interest.

· Requires signatures of both spouses to convey or encumber.

· Estate passes to the surviving spouse outside of probate.

· No court action required to 'clear´ title upon the first death.

 Community Property

· Requires a valid marriage between two people.

· Each spouse holds an undivided one-half interest in the estate.

· One spouse cannot partition the property by selling his or her interest.

· Requires signatures of both spouses to convey or encumber.

· Each spouse can devise (will) one-half of the community property.

· Upon death, the estate of the decedent must be 'cleared´ through probate, affidavit or adjudication.

 Joint Tenancy with the Right of Survivorship

· Parties need not be married; may be more than two joint tenants.

· Each joint tenant holds an equal and undivided interest in the estate, unity of interest.

· One joint tenant can partition the property by selling his or her interest.

· Requires signatures of all joint tenants to convey or encumber the whole.

· Estate passes to surviving joint tenant outside of probate.

· No court action required to 'clear´ title upon death of joint tenant(s).

 Tenancy in Common

· Parties need not be married; may be more than two tenants in common.

· Each tenant in common holds an undivided fractional interest in the estate. Can be disproportionate, e.g.,    60% and 40%.

· Each tenant´s share can be conveyed, mortgaged or devised to a third party.

· Requires signatures of all tenants to convey or encumber the whole.

· Upon death, the tenant´s proportionate share passes to his or her heirs by will or intestacy.

· Upon death the estate of the decedent must be 'cleared´ through probate, affidavit or adjudication.


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