Can California Probate Be Avoided if the Decedent Owned Property Jointly?

When a loved one dies, families often wonder what will happen to the property they owned together with someone else. In California, jointly owned property may go directly to someone else without the need to be probated. However, this is not true for every type of joint ownership. The way the property is legally titled can determine whether the deceased owner’s share passes automatically or must be handled through the California probate process.

How Joint Ownership Can Bypass Probate

When property is set up with a valid right of survivorship, the procedure is usually simple. Upon someone’s death, their share is transferred directly to the surviving party, which means probate is not necessary. This is true for both real estate and financial accounts,

However, it is essential to review how ownership and accounts are structured.

Joint Tenancy and Survivorship

This is a common way of owning property in California. This arrangement can help avoid probate. Joint tenants’ shares are equal, and this arrangement has a survivorship arrangement. If an owner dies, their portion directly goes to the remaining owner(s).

Community Property and Survivorship

Spouses with community property can choose a survivorship arrangement. When the paperwork is properly completed, the surviving spouse or partner inherits the property directly.

But wording matters. A property titled simply as community property doesn’t always work this way. Don’t just assume every marriage or partnership comes with this protection.

When Joint Ownership Won’t Avoid Probate

Not every joint ownership arrangement allows you to skip probate. For example, with “tenancy in common,” each owner has control over their own portion, which can be equal or unequal, and there’s no survivorship right.

When someone passes away, their share does not directly transfer. Instead, it typically goes through a will, trust, or, if there’s no estate plan, according to California’s intestacy laws. If the deceased owner’s share wasn’t placed in a trust, probate might be required.

Joint Bank Accounts Require Review

When it comes to bank accounts that have multiple names, things can get a bit tricky. Some are designed so that the surviving person gets all the money, while others are just for allowing someone to help with managing the funds. Make sure to review the bank account agreement and ownership terms before assuming the survivor has the right to the entire balance.

Is Joint Ownership the Best Way To Avoid Probate?

Sometimes joint ownership helps, but it isn’t a one-size-fits-all solution. Adding someone to your property title, whether it’s a child, sibling, or anyone else, just to skip probate, can create issues. Risks may include:

• Giving up some control over how the property is handled
• Potential claims against the property from the new owner’s creditors
• Divorce or lawsuit issues involving the new owner
• Potential gift tax issues
• Disagreements or tension among family members
• An inheritance that may not be divided as intended

A California probate attorney can review ownership documents and explain whether jointly owned property is likely to pass outside probate.

Contact The Probate Guy

If you are concerned about probate after a loved one’s death, contact the dedicated California probate attorney, Robert L. Cohen – The Probate Guy – today to schedule a telephonic consultation.

Southern California Probate Lawyer Serving Orange, Riverside, Anaheim, Whittier & Beyond.