6 Ways to Hold Title to Your Home (and Why It Matters)

How You Hold Title Matters

When you purchase a property, you'll be asked how you'd like to "hold title." This is the legal way your ownership is recorded on the deed. Your choice affects your ownership rights, tax treatment, and how the property transfers if you die or become incapacitated. Choosing the right option before you close can save your heirs significant time, money, and legal headache down the road.

Below are the most common vesting options in California.

Sole Ownership

You take title as an individual. You have full control and sole decision-making authority. Without a living trust in place, the property will pass through probate at your death regardless of what your will says.

Joint Tenancy

Two or more people hold equal, undivided interests. All joint tenants must acquire their interest at the same time, through the same deed. When one owner dies, their share passes automatically to the surviving owner(s) by right of survivorship, with no probate required. The limitation is that you cannot will your share to anyone outside the title. If you want flexibility in how your interest is inherited, this isn't the right structure.

Tenancy in Common (TIC)

Ownership is shared, but interests don't have to be equal. One person might hold 60%, another 40%. Each co-owner can sell, transfer, or bequeath their share independently without the others' consent. That flexibility is both its strength and its risk. If co-owners disagree about the property, partition litigation becomes a real possibility.

Community Property

In California, property acquired during marriage is presumed to be community property, meaning each spouse holds an equal 50% interest regardless of whose name appears on the loan. This applies to property acquired during marriage; assets owned before marriage or received as a gift or inheritance during marriage are generally considered separate property. Each spouse can will their half separately. Without planning, the decedent's share may still pass through probate.

Community Property with Right of Survivorship

This vesting combines equal marital ownership with automatic transfer at death. The surviving spouse inherits the entire property without probate. It also preserves the full step-up in cost basis on the entire property at the first spouse's death, which can significantly reduce capital gains exposure if the property is ever sold.

Living Trust

When title is held in a trust, the deed names the trust rather than you personally, for example Taylor Homebody, Trustee of the Homebody Family Trust dated January 1, 2025. You retain full control: you can sell, refinance, or occupy the property as you normally would. At your death, the trust instrument governs distribution directly, bypassing probate entirely.

The process is straightforward: an estate attorney drafts the trust document, and your escrow officer or title company records a new deed transferring ownership from you to the trust. One critical step that's easy to overlook: the deed transfer must actually be recorded. A trust that hasn't been properly funded offers none of these protections.

The Bottom Line

How you hold title is a legal and financial decision, not a formality. Before you close, consult with your escrow officer, estate attorney, or financial advisor to confirm that your vesting aligns with your broader estate plan and tax strategy. The name on the deed shapes everything that follows.

The information in this guide is provided for general educational purposes only and does not constitute legal, tax, or financial advice. Real estate and estate planning laws vary by individual circumstance. We recommend consulting a California-licensed real estate attorney or title officer before making any decisions about how to hold title.