Table of Contents
Key Takeaways
What Is Community Property with Right of Survivorship?
How CPWROS Differs from Joint Tenancy
Tax Advantages for Surviving Spouses and Partners
How Title Affects Probate
Related Resources
FAQ
How The Grossman Law Firm Can Help
Key Takeaways
- Community Property with Right of Survivorship (CPWROS) allows real property to pass automatically to the surviving spouse or domestic partner upon the death of the first spouse or partner without the need for probate.
- CPWROS provides a full step-up in basis for tax purposes, unlike joint tenancy, which only steps up the deceased spouse’s half of the property.
- This form of title became available for married couples in 2001 and domestic partners in 2003 under California law.
- Proper title designation can affect both inheritance rights and tax liabilities when one spouse dies.
What Is Community Property with Right of Survivorship?
In California, Community Property with Right of Survivorship (CPWROS) is a form of property ownership that combines the benefits of community property and joint tenancy. It allows married couples or registered domestic partners to hold title together. This means that, when one partner dies, the survivor automatically inherits the entire property—without going through probate.
This right of survivorship simplifies the transfer of real property after death, while preserving the benefits of community property.
At The Grossman Law Firm, we help surviving spouses and heirs understand how title forms, such as CPWROS, affect property transfers and probate rights under California law.
How CPWROS Differs from Joint Tenancy
Before 2001, most married couples held title as joint tenants. While joint tenancy also allows property to pass automatically to the surviving co-owner, it does not offer the same tax advantages.
In a joint tenancy, only the deceased spouse’s half of the property is “stepped up” to its fair market value at death. The surviving spouse’s half retains its original basis, which can result in capital gains tax when the property is later sold.
By contrast, under Community Property with Right of Survivorship, the entire property receives a full step-up in basis, eliminating capital gains on appreciation before the decedent’s death.
Tax Advantages for Surviving Spouses and Partners
The main tax benefit of CPWROS is that it provides a full step-up in basis when one spouse or partner dies. When one spouse or partner dies, the property receives a 100% step-up in basis to its fair market value as of the date of death.
That means if the survivor later sells the property, no capital gains tax will be due on the increase in value that occurred during the couple’s ownership—only on appreciation that occurs after the date of death.
This advantage can save surviving spouses or partners tens of thousands to hundreds of thousands of dollars in taxes, depending on the property’s appreciation.
How Title Affects Probate
Suppose real property is held as Community Property with Right of Survivorship. In that case, it does not need to go through probate when one spouse dies. The title automatically transfers to the surviving spouse by operation of law.
However, if the title was held differently—such as in community property without right of survivorship, joint tenancy, or tenancy in common—probate or additional legal steps may be required.
An experienced California probate attorney can help determine the correct title status. This will ensure the transfer is properly recorded and resolve any disputes that arise.
Related Resources
- Overview of the California Probate Process
- 4 Steps: Transfer of Property in California after Death
- Who Handles the Estate If There’s No Will in California?
- 7 Facts About Bonds in California Probate Administration
- Can’t Afford a Probate or Trust Attorney?
FAQ
What is the difference between community property and community property with right of survivorship?
Community property gives each spouse a 50% interest in the property. However, when one spouse dies, their share typically passes through probate. Community Property with Right of Survivorship, on the other hand, allows the surviving spouse to automatically inherit full ownership without the need for probate.
Does CPWROS apply to domestic partners?
Yes. Since 2003, registered domestic partners in California have been able to hold property as Community Property with the Right of Survivorship.
Do I need to record anything after my spouse passes away?
Yes. The surviving spouse must record an Affidavit of Death of Spouse with the county recorder’s office and attach a certified copy of the death certificate to clear title.
Can a CPWROS title be changed?
Yes, but both spouses must agree in writing to change the title. Once changed, the property may lose its automatic survivorship or tax benefits.
How The Grossman Law Firm Can Help
At The Grossman Law Firm, we help surviving spouses and heirs throughout California understand how property title affects probate, inheritance, and taxation. Whether you need to confirm ownership rights or resolve a dispute involving real estate held in community property, our team can help.
Call (888) 443-6590 or fill out our Get Help Now form.
Our Intake Specialists can evaluate your case at no cost to you to assess your situation. Qualifying cases will be scheduled for a Free Phone Consultation with Attorney Scott Grossman.
Originally Published Apr 5, 2018