In a Sale
What This Means When the House Is Being Sold
The consequence surviving spouses most often miss is the basis treatment. In separate property states, one spouse's death typically resets basis on that spouse's half. In community property states the treatment can reach the whole property, which changes the tax picture on a later sale substantially.
The second consequence sits on title. A house may be vested as community property, as community property with right of survivorship, or as joint tenancy, and the three behave differently when one spouse dies. What the recorded deed says governs, not what the couple believed they had done.
Compare
Not to Be Confused With
- This TermCommunity Property
- Often Mistaken ForJoint Tenancy
- Often Mistaken ForRight of Survivorship
- Often Mistaken ForStep-Up in Basis
What Tells Them Apart
Joint tenancy and community property are different forms of ownership that can look identical on a statement and behave differently at death. Community property with right of survivorship combines features of both. Which one applies is determined by the vesting language on the recorded deed. The differences matter most for basis, which is where Step-Up in Basis picks up.
Nevada
In Nevada
Nevada is a community property state, and community property with right of survivorship is available as a vesting here. Which one a couple used shows on the recorded deed.
Questions
Questions People Ask
What happens to community property when one spouse dies in Nevada?
It depends on how the property is vested and on whether there is a will or a trust. Some vestings pass automatically to the survivor and others do not. The recorded deed is the starting point, and an attorney can read it alongside the estate documents to say what applies.
Does community property get a step up in basis?
Community property can receive different basis treatment than separate property when one spouse dies, and the difference can be significant on a later sale. How it applies depends on the vesting and the facts, so a tax advisor should confirm before a sale is planned around it.