A: You and your spouse should not only create a trust, but should also sign a Community Property Agreement. In California, which is a community property state, confirming their assets as community property could save the surviving spouse as much as six figures in taxes one day upon an eventual sale of the home. This is due to the “double step-up in basis” that California residents are able to take advantage of. An important TIP: If you have other family or friends that have owned real estate for 30+ years, it is imperative that a qualified estate planning attorney research those properties to determine what steps can be taken to reduce tax exposure down the line.
Q: If my spouse and I purchased our home in 1976 and are on title as joint tenants, what can we do to reduce the taxes the survivor would have to pay if they ever decided to sell the property after one of us passed away?
