Estate

Question 1

Community property interest

Answer 1

Community property interest (everything else)

1. Income earned by spouses or one spouse during marriage
2. Appreciation on solely owned property that is attributable to the contributions of the non-owner spouse
3. Separate assets that have been commingled with community assets where it can no longer be determined which are separate and which is community

Main advantage
The property gets a full step-up in basis (only LTCG property) in the entire property if at least one-half of the whole property is includible in the deceased spouse’s gross estate.

Question 2

CLAT (normal use?)

Answer 2

For a Large Donation

Question 3

Non-community property interest

Answer 3

Non-community property interests (AKA separate property)

1. Income earned by spouses prior to marriage
2. Property received as a gift by one spouse
3. Property inherited by one spouse