How to Hold Title in California: Community Property, Joint Tenancy, Trusts and More

By Matthew Martinez, Founder, CEO & Managing Broker, Diamond Real Estate Group. California DRE #01869679.

In California you can take title as a sole owner, as spouses in community property (with or without a right of survivorship), as joint tenants, as tenants in common, through a living trust, or through an entity such as an LLC. The choice decides who inherits your share, whether a court process is needed when an owner dies, and, for spouses, how much of the property’s tax basis can be reset at death. Escrow will ask for your vesting before closing, so it pays to decide with your attorney or CPA early.

This guide explains each option at a high level, with official sources. It is a starting point for that conversation, not a substitute for it.

The options side by side

Sole ownership

One person holds title, for example "a single man," "an unmarried woman," or "a married woman as her sole and separate property." A married buyer taking title alone often needs the spouse to sign a quitclaim or interspousal deed, because property acquired during marriage is presumed community property under Family Code 760. At death, a sole owner’s home passes under their will or intestacy, which may require probate unless another transfer method applies.

Community property

Under Family Code 760, property a married person acquires during marriage while living in California is community property, unless another statute says otherwise. Each spouse owns half and can leave that half by will.

Tax basis. The IRS lists California as a community property state in Publication 555. When one spouse dies, the total fair market value of community property generally becomes the basis of the entire property, including the surviving spouse’s half, if at least half of the community interest is included in the deceased spouse’s gross estate. That full reset can reduce capital gains if the survivor later sells. Publication 555 notes this rule does not apply to registered domestic partners, so partners should get tax advice.

Community property with right of survivorship

Civil Code 682.1, operative July 1, 2001, lets spouses (and registered domestic partners, who have the same property rights under Family Code 297.5) combine community property with survivorship. Requirements and effects:

• The deed must expressly declare the property to be community property with right of survivorship, and the grantees must accept that in writing on the face of the deed.
• When one spouse dies, the property passes to the survivor without administration, using the same procedures as joint tenancy.
• Either spouse can end the survivorship right before death in the same way a joint tenancy can be severed.

Because it remains community property, the IRS community property basis rule described above can still apply, subject to the gross-estate condition. Confirm with your CPA.

Joint tenancy

Under Civil Code 683, a joint tenancy is a joint interest in equal shares, created by a deed or will that expressly declares it. Its defining feature is survivorship: when one joint tenant dies, the survivors take that share.

• Probate. The California courts explain that joint tenancy property passes to the surviving joint tenant without probate. The survivor typically records an affidavit of death of joint tenant with a certified death certificate at the county recorder, per the Alameda County Superior Court’s simplified probate procedures page.
• Tax basis between spouses. For a qualified joint interest between spouses, IRS Publication 551 says half the value is included in the deceased spouse’s estate regardless of who paid; the survivor’s basis is their own cost basis in their half plus the inherited half’s new basis. That is generally a smaller reset than full community property treatment.
• Tax basis between non-spouses. Publication 551 explains that the amount included in the estate depends on each owner’s contribution, which affects the survivor’s basis.
• Will doesn’t control. A joint tenant generally cannot leave their share by will while the joint tenancy stands.

Tenancy in common

If several people take title in their own right and the deed does not say otherwise, Civil Code 686 makes them tenants in common (unless they acquire as partners or as community property). Shares can be unequal, each owner can sell or leave their share, and there is no survivorship. A deceased owner’s share may need probate unless held in a trust. Co-owners who cannot agree on selling can face a court partition; see partition actions in California. Unrelated buyers, investors and family members buying together often use this form with a written co-ownership agreement.

Living trust

With a revocable living trust, title is held by the trustee, for example "Jane Doe, Trustee of the Doe Family Trust dated…" The trust document, not the deed, controls who receives the property.

• Probate. The California courts’ small estate page says property held in a trust does not count toward the estate value used for small-estate procedures. Trust property is typically handled by the successor trustee; see selling a house in a trust.
• Property tax. The Board of Equalization says a transfer into a revocable trust is excluded from reassessment when the transferor keeps the power to revoke.
• Tax basis. For married couples, how community property is characterized inside the trust matters for the basis rules above. Your estate planning attorney drafts this.

Many buyers take title in their own names at closing and deed to the trust afterward, or vest directly in the trust if the lender permits. Ask your lender before closing.

LLC or other entity

An LLC can hold investment or commercial property, and some owners use one for liability planning. Points to weigh:

• California costs. The Franchise Tax Board says every LLC doing business or organized in California owes an $800 annual tax, plus a fee once California income reaches $250,000, and must file Form 568. Check FTB for the current figures.
• Reassessment. The BOE’s change in ownership FAQ describes a proportional interest exclusion: a transfer between individuals and an entity is excluded when each owner’s proportional interest stays the same. Later changes in who controls the entity can trigger reassessment, so get advice before transferring.
• Financing. Owner-occupant home loans are generally made to individuals. If you plan to finance, ask your lender how it treats entity title before you commit.
• Probate. The LLC keeps owning the property; your membership interest passes under your estate plan.

For investors, our investor services team works alongside your attorney and CPA on vesting for rentals and multifamily.

Probate and transfers at death: a summary

Figures are from the California courts’ simple transfer page, which says limits update every three years, next on April 1, 2028; check the current amounts. For full probate, see selling a house in probate in California, and for a widowed owner, selling a home after a spouse dies.

Property tax: who you add to title matters

The BOE says transfers between spouses are excluded from reassessment, and adding a joint tenant is not reappraised as long as the original owner stays on title. Adding someone as a tenant in common, however, is a change in ownership unless another exclusion applies. Parent-child transfers at death are governed by Proposition 19; see Prop 19 and inherited homes. A Preliminary Change of Ownership Report (BOE-502-A) is filed when the deed records.

How to choose

1. List your goals: avoid probate, maximize basis reset, leave a share to children from a prior marriage, protect against liability, or keep control.
2. Ask your estate planning attorney which vesting matches those goals, and your CPA about basis and income tax effects.
3. Give escrow the exact vesting language before documents are drawn; see the California escrow timeline. Title insurance insures title as vested; see title insurance in California.

Agents and escrow officers cannot give legal advice on vesting. We can coordinate timing and connect you with professionals.

Questions people ask

What is the best way for a married couple to hold title in California?

There is no single best choice. Many couples weigh community property with right of survivorship or a living trust, because of survivorship and the community property basis rule. Your attorney and CPA should decide based on your estate plan.

What is the difference between joint tenancy and community property with right of survivorship?

Both pass to the survivor without probate. Community property with right of survivorship is only for spouses and keeps community property character, which can matter for the IRS basis rule at death. Joint tenancy is open to anyone and requires equal shares.

Does joint tenancy avoid probate in California?

Generally yes for that asset. The survivor records an affidavit of death of joint tenant with a certified death certificate.

What happens if co-owners don’t specify how they hold title?

Under Civil Code 686, co-owners are tenants in common unless the deed declares a joint tenancy, they acquire as partners, or the property is community property.

Can I change how I hold title after I buy?

Yes, usually by recording a new deed. Check reassessment rules with the BOE or your county assessor and get tax advice first.

Should I buy my home in an LLC?

It is more common for investment property. The LLC owes California’s annual tax, owner-occupant financing is usually made to individuals, and changes in entity ownership can trigger reassessment. Talk to an attorney and CPA.

Does a living trust avoid reassessment?

A transfer into a revocable trust you can revoke is excluded from reassessment, per the BOE. What happens when the property later passes to beneficiaries is a separate question; ask your attorney and the county assessor.

Sources & notes

1. California statutes via California Public Law (official versions on leginfo.legislature.ca.gov): Family Code 760, Civil Code 682.1, Civil Code 683, Civil Code 686.
2. IRS Publication 555, Community Property.
3. IRS Publication 551, Basis of Assets.
4. California Courts Self-Help, Simple transfer (small estates).
5. Superior Court of Alameda County, Simplified Probate Procedures: joint tenancy affidavit and spousal property petition.
6. California State Board of Equalization, Change in Ownership FAQs.
7. California Franchise Tax Board, Limited Liability Company.
8. Estate and gift tax thresholds and county recording procedures are not covered here; confirm with your CPA and county recorder.

General information, not legal, tax or lending advice. Updated November 2026. Primary sources are linked in this guide.

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