Pg 1 Flashcards
What is the major mantra of community property?
A change in form doesn’t change the character of the property
What is involved in a California valid marriage?
This is a civil contract between two people that each are capable of consenting and do consent
Requires: license, solemnization, registration with county records
What is a codicil?
An addendum to a will
Does a gift require consideration to be valid?
No
What happens to income from property?
It retains the same character as the original property.
I.e.: if you inherit a mountain cabin, that is your SP, so all rent from the cabin is also SP.
What happens to rent, issues, and profits from SP?
It stays SP unless it becomes a mixed asset because those things are gotten by the efforts of one spouse
What happens to a joint tenancy when someone dies?
The survivor takes all
Joint tenancy is actually a form of what kind of ownership?
Separate property
What does each spouse get with regard to a joint tenancy?
An undivided half interest in the joint tenancy with right of survivorship
If you want to create a joint tenancy, what is necessary?
That it is expressed in clear and unequivocal language
What happens in a tenancy in common?
Each spouse takes an undivided fractional interest in the whole with no right of survivorship.
When an attempted joint tenancy fails, what happens?
It becomes a tenancy in common
Where must the spouses live in order for a separation to occur?
At different addresses
What does “Step Up” mean?
This is when property passes from a decedent to a survivor, and the survivor gets a step up in BASIS to the fair market value of the property at the decedent’s death. This means there’s no taxable gain so the person does not have to pay taxes.
The same is true if the property is held in joint title by spouses and one spouse dies. The decedent’s 1/2 goes to the living spouse who gets a step up.
What is the difference that happens between a spouse taking property at death through community property or joint title with regard to “step up”?
– Community property: spouse gets a step up for all property and pays no taxable gain
– joint tenancy: the surviving spouse only gets a step up for the decedent’s half of the property, not for his own half. So there is still a taxable gain on his half when he sells it.
What is taxable gain?
When property is sold, there’s a difference between the sales price and the seller’s basis. The basis is the sum of the purchase price and the cost of improvements
What happens at death in relation to a marriage?
Termination happens at death. So if a party dies before a divorce is entered, the divorce abates entirely
What is undue influence?
Taking grossly oppressive and unfair advantage of another’s necessity or distress.
Untitled property that is gotten during marriage is presumptively what?
Community property.