What is community property?

Community property is a form of property ownership used for assets owned by spouses. Only some states recognize community property.

With community property, each spouse has an ownership interest in the property. That is often true even if only one spouse's name is on the title. 

Community property generally includes assets earned or acquired during marriage. Income is a common example of something that may be community property, even if only one spouse is working. If community property income is used to purchase other assets, those may also be community property. A residence is a common example of something that may be community property, even if only one spouse’s name is listed on the title. 

We've designed our trusts to be joint Trusts in community property states. We feel this is the best option as it provides significant benefits from a tax and legal perspective, and more closely matches the way laws are set up in your state. We do not have an option for a married person to create a separate Trust in a community property state.

 

You can learn more about community property states here.

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