Joint Property Titling Overview

June 13, 2025

The way property is titled overrides any beneficiary designations or wills, thus it is important to understand the various options and considerations. Below we outline options for titling joint property, which could include both investments and real estate.

Joint Tenants with Rights of Survivorship (JTWROS)

Two or more people own property jointly, with equal rights.
Each tenant has the right to sell or transfer their share of the property to someone else.
With equal rights come equal responsibilities. If one owner fails to contribute financially, the other owner(s) are held equally responsible.
When one of the owners dies, the right of ownership passes to the surviving owner(s). In the case of spouses, the surviving spouse receives a step-up in basis on the deceased spouse’s 50% share of the joint account. In the case of non-spouses, the portion that is stepped up is based on the decedent’s percentage of contribution.

Tenants by the Entirety (TBE)

Available in certain states, this form of ownership is used by 2 legally married owners and assumes that the couple owns the property as one person.
This ownership type can be used for asset protection as it is generally not available to the creditors of only one of the spouses.
Neither spouse can either terminate or transfer the tenancy, or sell or transfer their ownership interest without the consent and permission of the other.
Ownership is transferred to the other spouse if one of them passes away, like JTWROS. The surviving spouse receives a step-up in basis on the deceased spouse’s 50% share of the joint account.
Note: In many states, the terms “husband” and “wife” are used in legislative codes, rather than “spouses”. Same-sex couples should consult with an attorney if they intend to hold property as Tenants by the Entirety.

Tenants in Common (TIC)

2 or more people own property jointly, with equal or unequal percentages of ownership. Most often, the percentage of ownership is determined by how much each owner initially contributes to the property.
Each owner holds title to their portion of the property individually and is free to sell or transfer their share of the property to a third party without the consent of the co-owner(s) unless restrictions are laid out in a separate ownership agreement.
Like JTWROS, if one owner fails to contribute financially, the other owner(s) would be held equally responsible.
When one of the owners dies, ownership of their portion will transfer to their heirs, not to the other owner(s). The ownership interest percentage of the decedent receives a step-up in basis.

Community Property (CP)

Nine states have community property laws: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.
Assumes each spouse owns everything equally, thus each spouse typically gets an equal division of the property in the event of divorce or death. The same logics applies to debts – that each spouse owes them equally.
Typically, gifts to and inherited assets of one spouse are not considered community property, nor are assets acquired before the marriage (unless voluntarily “converted”
to community property).
The surviving spouse receives a step-up in basis on 100% of the joint account, which is referred to as a “full step-up” or “double step-up”.

Community Property with the Right of Survivorship (CPWROS)

Allows one spouse’s interest in community property assets to pass probate-free to the surviving spouse in the event of death.

Vicus Capital is neither a law firm nor a certified public accounting firm and no portion of the content should be construed as offering or disseminating specific legal or accounting/tax advice.

For Use with the General Public. Financial Planning and Advisory Services offered through Vicus Capital, Inc., a federally Registered Investment Advisor.

Categories: Financial Planning

Tags: Community Property, Community Property with the Right of Survivorship, Joint Property Titling, Joint Tenants with Rights of Survivorship, Tenants by the Entirety, Tenants in Common