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ProbateWill

Community Property with Right of Survivorship

By July 8, 2025No Comments

Table of Contents

Key Takeaways

  • Community Property with Right of Survivorship (CPWROS) allows a surviving spouse or partner to automatically inherit property.
  • CPWROS offers a full step-up in basis for tax purposes, reducing potential capital gains taxes.
  • Since 2001 (2003 for domestic partners), CPWROS is available under California law as an alternative to joint tenancy.
  • Joint tenancy only steps up the decedent’s half of the property, which can result in taxable gains for the survivor.
  • The Grossman Law Firm helps clients understand their property rights and options under California probate law.

What Is Community Property with Right of Survivorship?

Community Property with Right of Survivorship (CPWROS) is a way for married couples or registered domestic partners in California to hold title to real property. When one spouse or partner passes away, the surviving spouse automatically inherits full ownership of the property—without the need for probate.

CPWROS was introduced in California in 2001 (and in 2003 for domestic partners) as a more tax-advantageous alternative to joint tenancy. Unlike traditional community property or joint tenancy, CPWROS combines the probate-avoidance feature of joint tenancy with the full tax benefits of community property.

CPWROS vs. Joint Tenancy

While both CPWROS and joint tenancy provide automatic transfer of ownership upon death, they differ in how the property’s value is treated for tax purposes.

  • Joint Tenancy: Only the decedent’s half of the property receives a step-up in basis.
  • CPWROS: The entire property receives a step-up in basis.

This distinction is important. Under CPWROS, the surviving spouse or partner will likely avoid capital gains taxes if they later sell the property. In joint tenancy, the surviving owner may face a capital gains tax on their original share.

Example:

Let’s say a couple purchased a home for $200,000, and it’s now worth $600,000. If held in joint tenancy, only $300,000 (half) is revalued upon one spouse’s death. If the survivor later sells, they could owe capital gains tax on the other half.

With CPWROS, the full property value is stepped up to $600,000, likely eliminating capital gains if the property is sold shortly thereafter.

Tax Benefits of CPWROS

  • Full Step-Up in Basis: Minimizes or eliminates capital gains tax when the surviving spouse sells the property.
  • Avoids Probate: Like joint tenancy, CPWROS bypasses probate, saving time and legal expenses.
  • Simplifies Inheritance: The surviving spouse or partner automatically becomes the sole owner without additional legal action.

Who Should Consider CPWROS?

CPWROS is ideal for:

  • Married couples or domestic partners who own real estate together.
  • Couples looking to avoid probate while maximizing tax benefits.
  • Anyone concerned about capital gains tax on inherited property.

It’s important to ensure the title is properly worded and recorded with the county. Mistakes in titling can negate the benefits of CPWROS.

How The Grossman Law Firm Can Help

At The Grossman Law Firm, we help spouses, domestic partners, and families navigate California probate and trust law. If you’re unsure whether your property is properly titled—or if you have questions about your inheritance rights—we’re here to guide you.

We’ve worked with clients throughout California for over 20 years to:

  • Review property titles for CPWROS eligibility.
  • Assist with probate avoidance strategies.
  • Represent beneficiaries in disputes over real estate.

Resources

FAQ

Is CPWROS the same as community property?
No. CPWROS includes the right of survivorship, meaning the surviving spouse automatically inherits the property.

Can I change my title to CPWROS after marriage?
Yes. You can record a new deed with the county that designates the property as community property with right of survivorship.

Does CPWROS avoid probate?
Yes. Like joint tenancy, CPWROS allows property to pass outside of probate.

What happens if the surviving spouse dies without a will?
The property may then be subject to probate unless placed into a trust or governed by another estate plan.

Do both spouses need to agree to CPWROS?
Yes. Both spouses or partners must sign the deed designating CPWROS.

Next Steps

Understanding how your property is titled can have major implications for your future. Whether you’re preparing for the unexpected or dealing with the aftermath of a loved one’s passing, The Grossman Law Firm is here to help.

Call (888) 443-6590 or fill out our Get Help Now form.

Our Intake Specialists can evaluate your case to assess your situation at no cost to you. Qualifying cases will be scheduled for a Free Phone Consultation with Attorney Scott Grossman.

Let’s make sure your property—and your rights—are fully protected.