Concurrent Co-Ownership Interests

1 CommunityPropertyJointTenancyTenancyIn CommonTenancy In PartnershipTitleHolding TrustCommunity PropertyRight of SurvivorshipPartiesDivisionTitlePossessi onConveyancePurchaser'sStatusDeathSucces sor'sStatusCreditor'sRightsPresumptionAr ise only by virtueof partnership statusin property placed inpartnershipConcurrent Co-Ownership InterestsThe comparison below is provided for information only. It should not be used to determine how you hold strongly recommend that you seek professional counsel from an attorney and/or CPA to determine the legal and tax consequences of how title is husbandand wifeAny number ofpersons (can behusband and wife)Any number ofpersons (can behusband and wife)Only partners(any number)Individuals, groups ofpersons, partnership orcorporations, a living trustOnly husband and wifeOwnership andmanagerial interestsare equal (exceptcontrol of business issolely with managingspouse)

2 ownership interestmust be equalOwnership can bedivided into anynumber of interestsequal or unequalOwnership interest isin relation to interestin partnershipOwnership is a personalproperty interest andcan be divided into anynumber of interestsOwnership and managerial interestsare equalTitle is in the "community". Eachinterest is separatebut managementis unifiedSale or encumbranceby joint tenant servers jointtenancyEach co-owner hasa separate legaltitle to his/herundivided interestTitle is in the "partnership"Legal and equitabletitle is held by thetrusteeTitle is in the "community," management is unifiedBoth co-owners have equal managementand controlEqual right ofpossessionEqual right ofpossessionEqual right of possessionbut only for partnershippurposesRight of possession asspecified in the trustprovisionsBoth co-owners haveequal managementand controlRequires writtenconsent of otherspouse-or actualconveyance by interest isdevisable by willConveyance by oneco-owner withoutthe others breaksthe joint tenancyEach co-owner'sinterest may beconveyedseparatelyby its ownerA purchaser mayobtain a beneficialinterest by assignmentor may obtain legaland equitable titlefrom the trustDesignated partieswith the trustagreement authorizethe

3 Trustee to conveyproperty. Also abeneficiary's interest in the trust may betransferredRight of survivorshipmay be terminatedpursuant to the sameprocedures by which a joint tenancy may beseveredPurchaser can onlyacquire whole titleof community; cannot acquire apart of itPurchaser will become a tenant incommon with otherco-owners in theproperty as to the purchaser's owners mayremain joint tenantsPurchaser willbecome a tenantin common withother co-ownersin the propertyPurchaser acquiresinterest that partnership ownedPurchaser acquiresinterest that partnership ownedPurchaser can onlyacquire whole title ofcommunity; cannotacquire a part of itOn co-owner's death1/2 belongs tosurvivor in goes by will to descendant's deviseeor by succession tosurvivorOn co-owner's deathhis/her interest endsand cannot bedisposed of by owns theproperty bysurvivorshipOn co-owner'sdeath his/herinterest passes bywill to deviseeor heirs.

4 No survivorshiprightOn partner's deathhis/her partnershipinterest passes to thesurviving partnerpending liquidationof the of deceasedpartner then goes tohis/her estateSuccessor beneficiariesmay be named in thetrust agreement, eliminating the needfor probateUpon the death of a spouse, his/her interestpasses to the surviving spouse, withoutadministration, subject tothe same proceduresas property held in jointtenancyIf passing by will,tenancy in commonbetween devisee and surviving resultsLast survivor ownspropertyDevisee or heirsbecome tenantsin commonHeirs or devisee haverights in partnershipinterest but notspecific propertyDefined by the trustagreement, generallythe successorbecomes the beneficiaryand the trust continuesSurviving spouse ownspropertyProperty of commu-nity is liable for debtsof either sousewhich are madebefore or after mar-riage.

5 Whole propertymay be sold on execution sale tosatisfy creditorCo-owner's interestmay be sold on execution sale to satisfy creditor. Joint tenancy is broken,creditor becomes atenant in commonCo-owner's interestmay be sold on execution sale to satisfy his/her creditor. Creditorbecomes a tenantin commonPartner's interest cannotbe seized or sold sepa-rately by his/her personalcreditor but his/her shareof profits may beobtained by a personalcreditor. Whole propertymay be sold on executionsale to satisfy partnershipcreditorCreditor may seek anorder for execution saleof the beneficialinterest or ma seek anorder that the trustestate be liquidated andthe proceeds distributedProperty of community isliable for debts of either which are made beforeor after marriage.

6 Wholeproperty may be sold onexecution sale to satisfy creditorStrong presumptionthat property acquiredby husband and wifeis communityMust be expresslystatedFavored in doubtfulcases except husband and wifecasesArise only by virtueof partnership statusin property placed inpartnershipA trust is expresslycreated by an executedtrust agreementMust be expresslystat