Community Property in Arizona
Arizona is one of nine states that is classified as a community property state. Any assets attained during a marriage are considered jointly owned and any debts incurred are shared by the husband and wife. When a spouse passes, the surviving spouse owns the assets in full unless the deceased spouse leaves specific instructions in a Will or Revocable Living Trust. Assets acquired before marriage or through inheritance are considered separate property unless they are placed in accounts with both spouse's names listed. After being placed in a joint account, the assets and/or inheritance become joint assets. Income earned during the marriage is considered joint - so any assets purchased during a marriage using income is considered community property. Gifts received are considered separate property. If you own a home and have not taken estate planning precautions to avoid probate after the death of the first spouse, you may hold your house as Community Property with Right of Survivorship. The probate process is averted in this scenario. If you choose to hold assets as Tenants in Common, each spouse owns one-half of the assets. After the passing of the first spouse, the deceased's assets may be distributed to someone other than the surviving spouse. Consult a professional to determine the best method for titling your estate. Every family has unique circumstances requiring different ways of holding assets for later distribution. Don't leave your family unsure what is yours to leave for them. For more information, search the web for Community Property in Arizona. Written by Jamie KahnOwner of Four Peaks Planning, Inc.
(480) 229-6220
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