The method you choose for holding title on your real estate property in California can have unexpected legal and tax consequences, especially years from now when death or disagreement brings change to the relationship between the co-owners.
Given these distant, hard-to-imagine impacts, choosing how title is vested by the co-owners is often an afterthought (or even overlooked)! But the consequences of improper vesting can be devastating. Typically, problems do not arise until many years after the recording of the grant deed that includes the improper vesting. Then, the improper vesting suddenly becomes a problem upon the attempted sale or refinancing of the property, or upon the death or dissolution of marriage of one (or more) of the owners.