What advantage does "community property with right of survivorship" offer?

"Community property with right of survivorship" provides a significant advantage in the context of estate planning and property transfer. When two spouses own property as community property with right of survivorship, it ensures that, upon the death of one spouse, the surviving spouse automatically becomes the sole owner of the property. This automatic transfer simplifies the estate transfer process, as the property does not go through probate, which can be a lengthy and costly process.

Furthermore, this arrangement can offer tax benefits because, in many jurisdictions, the surviving spouse receives a step-up in the basis of the property to its current market value at the time of the deceased spouse's death. This means that if the property is later sold by the surviving spouse, capital gains taxes can be minimized or avoided, making it a financially advantageous situation.

In contrast, while other options may touch on related topics, they do not capture the core advantages that community property with the right of survivorship provides in terms of streamlining estate transfers and potentially offering tax benefits resulting from the property’s transfer without going through probate.