If there are not enough assets to distribute, a properly drafted will that calls for the full utilization of the unified credit will not be effective. Following is a summary of the types of ownership and general rights of owners or beneficiaries. Property owned in common by husband and wife during their marriage is referred to as community property. In community property states, property acquired by one or both individuals during a marriage is considered the property of both parties, with each spouse owning an undivided one-half interest. Regardless of which spouse acquires the property, title to half the acquisition passes to the other spouse by operation of law.
Most states require clear documentation for a joint tenancy with right of survivorship.
Joint tenancy ownership can cause several problems if used improperly. The use of a trust would alleviate this problem. Additionally, the uncertainty as to who can have final ownership might affect the marketability of a joint tenancy interest. There are no rights of survivorship. This arrangement provides more flexibility than other forms of joint ownership.