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Community Property

Community property is property that is considered to be equally owned by both partners in a marriage. It is not a binding law in all fifty states. States that do recognize community property say that all property other than inheritance and specific gifts is joints owned by both marital spouses. When planning an estate, individuals who live in states that recognize community property must remember to specifically endow their spouse with any parts of the marital property they want them to have. Or, they may bequeath their portion of the marital assets to whomever they wish. In states where community property laws do exist couples can assure that should death occur the remaining spouse receives the property by filing a document called a windows election to forgo any ensuing legal issues.

Fast Facts

  • 9 states currently have community property laws; the remaining states are considered common law states. Some common law states have aspects of community property in their laws.
  • Gifts and inheritances do not count towards community property in states that recognize community property.

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