The Best Way to Hold Title in California: Why Your Living Trust Should Be the Starting Point
How Title Vesting Works and What Each Option Really Means
If you read my recent blog on the importance of having your home in a living trust, you already know how valuable a trust can be for protecting your property, avoiding probate, and keeping things simple for your family. You can find that post here:
This guide builds on that conversation. When you purchase a home in Marin County or anywhere in California, you will be asked how you want to hold title. It sounds like a small detail, but it affects ownership rights, taxation, future transfers, and what happens to the property if something unexpected occurs.
In my experience, the most protective and forward-thinking way to hold title is through your living trust. After explaining why, I will walk through the other common vesting options so you can understand how each one works.
1. Holding Title in a Living Trust: The strongest and most flexible option
Holding your home in your living trust is often the best choice for long-term protection. It keeps your property out of probate, gives your successor trustees immediate authority if needed, and keeps your overall estate plan aligned. You can read more about why this matters in my previous blog, but the short version is that it makes future transitions significantly easier for your family.
A trust also allows your property to be transferred cleanly and privately, which is especially important in high-value markets like Marin where probate can be costly and time consuming. For most homeowners, this is the most complete and secure way to take ownership.
2. Sole Ownership: Best for individual buyers
If you are buying on your own, you can hold title in your name only. This is simple and straightforward. The downside is that your property will need to go through probate unless you move it into a trust later. It offers full control but little protection.
3. Community Property: For married couples in California
California is a community property state, which means assets acquired during a marriage belong equally to both spouses. This vesting option confirms that each spouse holds a fifty percent interest. It requires both spouses to sign documents related to refinancing or selling. Without a trust, the property still goes through probate when one spouse passes away.
4. Community Property With Right of Survivorship: For married couples who want an automatic transfer
This option works the same as community property but includes a right of survivorship. When one spouse passes away, the other becomes the sole owner automatically. It avoids probate and keeps things simple for the surviving spouse. Many married buyers in Marin choose this option. Pairing it with a trust provides even stronger protection.
5. Joint Tenancy With Right of Survivorship: For two or more people who want equal ownership
Joint tenancy gives each owner an equal share. When one owner dies, the surviving owner or owners automatically inherit that share. It avoids probate but requires equal ownership percentages. It can also be limiting if one owner wants to sell or transfer their portion.
6. Tenancy in Common: For buyers who want flexible ownership percentages
Tenancy in common allows owners to hold unequal shares. One owner might hold seventy percent while another holds thirty percent. Each owner can transfer their share independently, and there is no automatic survivorship. This is commonly used for friends, family members, or investors purchasing together in Marin and San Francisco.
7. Holding Title Through an LLC or Corporation: Best for investors or buyers who need liability protection
An LLC can own real estate and can be a good option for investment properties. It offers liability protection for the owners and can make sense for rental or multi-unit buildings. It is not typically used for primary residences because financing can be more complicated and often more expensive.
How to Decide Which Option Is Right for You
Your vesting choice should reflect your long-term goals, your relationship to any co-buyers, your estate plan, and how you want the property handled in the future. The decision can affect taxes, ownership rights, and the sale or transfer of the home later.
I always encourage buyers to talk with an estate planning attorney or CPA when deciding how to hold title, especially in a high-value market like Marin County where these details matter. If you would like introductions to trusted professionals, I am always happy to share recommendations.
Final Thoughts
Choosing how to hold title is an important step in the home buying process. Starting with your living trust gives you the strongest foundation for long-term protection. From there, understanding the other vesting options helps you make an informed decision that supports your goals today and in the future.
If you are buying a home or reviewing your current estate plan and want to understand how your title choices affect your real estate, feel free to reach out. I am always here to guide you.
