Avoiding Probate in California Avoiding Probate in California There are several ways to keep your estate out of probate. Assets owned through a living trust do not need to be probated. If an asset is owned by two or people as joint tenants, it will usually not be probated. After the death of one of the joint tenants, the surviving joint tenant owns the asset, regardless of what the will of the deceased joint tenant says about that asset.
Cost basis is one of the numbers used to determine capital gains.
For many homeowners, the cost basis is the price they paid for their home, plus any capital improvements that have been made. The cost basis is subtracted from the selling price to determine the capital gains. When a married couple owns an appreciated asset as community property, the surviving spouse will get a step-up in the cost basis to the fair market value at the date of death of the other spouse. In other words, if the surviving spouse has to sell the residence, he or she is unlikely to have to pay any capital gains. But if the residence is held in joint tenancy, it is more likely that some capital gains tax may be due.