Vesting Descriptions
Understanding Vesting Descriptions in California
When buying or selling a property in California, it's important to understand the various vesting descriptions that are used to determine ownership rights. This can greatly impact the transfer of ownership and any legal consequences that may arise. In this guide, we'll go over the common vesting descriptions used in California and what they mean.
| COMMUNITY PROPERTY | COMM. PROPERTY W/ RIGHT OF SURVIVORSHIP | JOINT TENANCY | TENANCY IN COMMON | TRUST | |
|---|---|---|---|---|---|
| PARTIES | HUSBAND AND WIFE OR DOMESTIC PARTNERS | HUSBAND AND WIFE OR DOMESTIC PARTNERS | TWO OR MORE PERSONS OR DOMESTIC PARTNERS | TWO OR MORE PERSONS OR DOMESTIC PARTNERS | ANY NUMBER OF BENEFICIARIES OF THE TRUST |
| DIVISION OF INTERESTS | EQUAL | EQUAL | EQUAL | ANY NUMBER OF INTERESTS, EQUAL OR UNEQUAL | BENEFICIAL INTERESTS UNDER TRUST MAY BE EQUAL OR UNEQUAL |
| TITLE | IN THE NAMES OF THE INDIVIDUAL OWNERS | IN THE NAMES OF THE INDIVIDUAL OWNERS | IN THE NAMES OF THE INDIVIDUAL OWNERS | IN THE NAMES OF THE INDIVIDUAL OWNERS | IN THE NAME OF THE TRUSTEE “AS TRUSTEE” |
| POSSESSION | EQUAL RIGHT OF POSSESSION | EQUAL RIGHT OF POSSESSION | EQUAL RIGHT OF POSSESSION | EQUAL RIGHT OF POSSESSION | ACCORDING TO TRUST AGREEMENT |
| CONVEYANCE | BOTH SPOUSES MUST JOIN IN A CONVEYANCE | BOTH SPOUSES MUST JOIN IN A CONVEYANCE | CONVEYANCE BY ONE CO-OWNER BREAKS THE JOINT TENANCY | EACH CO-OWNERS INTEREST MAY BE CONVEYED SEPARATELY | TRUSTEE MAY CONVEY IN ACCORDANCE WITH THE TRUST AGREEMENT |
| DEATH | DECEDENT’S SPOUSE 1/2 INTEREST PASSES TO DECEDENT’S ESTATE | DECEDENT’S 1/2 INTEREST PASSES TO SURVIVOR | DECENDENT’S INTEREST PASSES TO THE SURVIVOR(S) | DECEDENT’S INTEREST PASSES TO DECENDENT’S ESTATE | TRUST AGREEMENT USUALLY PROVIDES FOR DISTRIBUTION UPON DEATH OF THE SETTLOR |
| SUCCESSORS STATUS | TENANCY IN COMMON BETWEEN DEVISEE AND SURVIVOR RESULTS | SURVIVOR OWNS ENTIRE INTEREST | LAST SURVIVOR OWNS ENTIRE INTEREST | DEVISEES OR HEIRS BECOME TENANTS IN COMMON | TRUST AGREEMENT USUALLY PROVIDES FOR DISTRIBUTION UPON DEATH OF SETTLOR |
| POSSIBLE ADVANTAGES/ DISADVANTAGES | QUALIFIED SURVIVORSHIP RIGHTS; MUTUAL CONSENT REQUIRED FOR TRANSFER; SURVIVING SPOUSE OR DOMESTIC PARTNER MAY HAVE TAX ADVANTAGE | RIGHT OF SURVIVORSHIP; MUTUAL CONSENT REQUIRED FOR TRANSFER; SURVIVING SPOUSE OR DOMESTIC PARTNER MAY HAVE TAX ADVANTAGE | RIGHT OF SURVIVORSHIP (AVOIDS PROBATE) MAY HAVE TAX ADVANTAGES FOR SPOUSES | CO-OWNERS INTERESTS MAY BE SEPARATELY TRANSFERABLE | SUBJECT TO ALL REQUIREMENTS SET FORTH IN THE TRUST |
Disclaimer
This chart is provided for reference purposes only. How you take title has important legal consequences, and this chart should not be relied upon to make that decision. Pathway Escrow cannot provide legal advice and you are advised to consult with your tax and/or legal advisor regarding how you should take title to your property.
If you have any questions about vesting descriptions in California, please feel free to reach out to Pathway Escrow.
And for a more in-depth understanding of vesting descriptions, download our PDF guide now!
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