Ways to hold title in California

The “best” way to hold title really depends on your goals—whether that’s asset protection, tax planning, ease of transfer, or avoiding probate. Here’s a breakdown of the most common options and their pros/cons (U.S. focused, especially California since you’re in Silicon Valley) - Consult with your Tax Advisor or an Trust Estate Attorney.

1. Sole Ownership

Who it’s for: One individual owner.

• Pros: Simple, full control.

• Cons: Full liability exposure; probate required upon death.

2. Joint Tenancy with Right of Survivorship (JTWROS)

Who it’s for: Two or more owners (often spouses or family) who want the property to automatically pass to the surviving owner(s).

• Pros: Avoids probate; simple transfer at death.

• Cons: Each owner’s interest is equal; sale or refinance requires all owners’ consent; no flexibility in ownership percentages; may have tax implications.

3. Tenancy in Common (TIC)

Who it’s for: Two or more owners who may have different ownership percentages.

• Pros: Flexible ownership shares; each owner can sell, will, or gift their interest independently.

• Cons: No survivorship rights—interest goes through probate unless in a trust.

4. Community Property (California & other community property states)

Who it’s for: Married couples.

• Pros: Equal ownership; potential step-up in basis on both halves at death for tax savings.

• Cons: Probate unless in a trust; equal ownership required.

5. Community Property with Right of Survivorship (California option)

Who it’s for: Married couples wanting tax advantages and probate avoidance.

• Pros: Full step-up in tax basis and automatic transfer to surviving spouse without probate.

• Cons: Only for married couples.

6. Living Trust

Who it’s for: Anyone wanting to avoid probate and maintain control.

• Pros: Avoids probate; privacy; can outline exactly how property passes; flexible for tax and estate planning.

• Cons: Requires setup and ongoing maintenance; must be properly funded (title transferred into the trust).

💡 Quick Tips for Choosing:

• Avoid probate: Joint Tenancy, Community Property with Right of Survivorship, or a Trust.

• Maximize tax step-up: Community Property or Community Property with Right of Survivorship (in CA).

• Flexibility with co-owners: Tenancy in Common.

• Estate planning & control: Living Trust is usually the gold standard.