Group real estate agreements (“CPAs”) can offer estate planning benefits if they are intended for the couple concerned. Many people mistakenly think that once they marry all their property, it magically becomes a co-owner, and after the death of a spouse, it is automatically transferred to the surviving spouse. It`s not true. Unless a couple has signed an agreement or loses their property, gifts, estates and property that a spouse owned before the marriage. The property acquired during a marriage with a separate property remains the property separate from the spouse who owned the separate property. Community ownership consists of wages earned during marriage, property acquired with wages earned during marriage and property converted into condominiums. Each spouse can transfer his half of the condominium and the entirety of his separate property to whomever he wants. A couple can change all their property into a condominium by signing a CPA in the presence of a notary. Community ownership agreements consist of two fundamental variants: a CPA VESTing and a non-national CPA.

In addition, only nine states are communal jurisdictions that recognize common property rights. Therefore, if a couple who has entered into a collective real estate contract owns property in another state, the courts of that state cannot recognize the agreement and require that an estate proceeding be initiated in that state. David and Martha, for example, have assets worth $4,000,000. You sign a non-vesting CPA. Martha dies in 2020. All of David and Martha`s real estate changes their tax base at fair value at the time of Martha`s death. David has $2,000,000 worth of assets and Martha`s estate has assets worth $2,000,000. The $2,000,000 that belongs to Martha`s estate can fund a bypass trust as Martha wishes and avoid inheritance tax.

A CPA can terminate a particular event, for example. B in the event of a transfer of residence from Washington State to another state or by the contracting parties who sign another agreement calling the CPA in the presence of a notary. When the CPA ends with the filing of the divorce, it can acquire property acquired after the person`s separate assets are deposited and prevent the property from being automatically transferred to a spouse if a person dies during the divorce proceedings.