[WSBARP] JTWROS - Community Property question

[Eric Nelsen]

I agree, JTWROS works, but I generally avoid it as an EP mechanism because JTWROS is such a fragile state of title. Even some off-public-record events can be enough to sever the right of survivorship, if I remember correctly. And certainly it’s unilaterally severable by executing a quitclaim deed from “X to X, to hold as tenant in common and sever right of survivorship.” In contract, a Community Property Agreement is contractual and not unilaterally terminable, and can also apply to all property instead of just one particular parcel of real estate. If the parties sell and buy a new property, the CPA will cover the new property but otherwise they’d have to remember to take the new parcel as JTWROS.

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
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eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

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From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Kira Rubel
Sent: Thursday, May 4, 2023 2:02 PM
To: WSBA Real Property Listserv <wsbarp at lists.wsbarppt.com>; WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBARP] JTWROS - Community Property question

Hey team - I don't know about the rest of you but I'm so tired of telling my surviving spouses that they have to do a lack of probate affidavit or, worse yet, a probate for the home they owned as community property!

Assuming there is no living trust or community property agreement, am I correct that RCW 64.28.040 is the third workaround, in that it allows a married couple to hold title to real property as JTWROS and still get the full step-up in tax basis on the first death? If so, why don't I see more deeds held this way?  Is anyone else doing this?


Kira M. Rubel, Esq.

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