purposes even though title was taken as joint tenants. Community funds were used to purchase and manage the property throughout the years.
Taking title as Community property with rights survivorship was not available in 1975.
Taking title as community property could’ve been done, but that would’ve created potential difficulties when one spouse dies (the property wouldn’t automatically pass to the surviving Spouse).
Thus, joint tenancy was the most popular option because the surviving spouse automatically takes ownership. This was the overwhelmingly popular way to take title in California and was recommended by professionals regularly albeit maybe in error.
My understanding is the state had to create a new way to take title (Community property with Rights survivorship) in 2001 to combine the benefits of community property and joint tenants.
I think you can make a pretty good argument that this is community property and deserves the 100% step up.
I’m not a tax attorney or accountant, but my neighbor is navigating this process and I’m trying to help him find out what to do. We will consult an attorney as this is seemingly very difficult to figure out online.