WHAT DO YOU OWN AND HOW DO YOU OWN IT

Washington is a community property state, meaning all property owned by a married couple in Washington is considered jointly owned community property, subject to a few exceptions.Property received by gift or inheritance and property owned prior to the marriage is considered the separate property of the recipient/ owner.
 
If there is separate property, a Property Status Agreement that specifies which property is separate should be included as part of estate planning. Additionally, it can be advantageous to create a separate property trust to own just the separate property.
 
Unmarried partners in a committed relationship may own property in the same manner as a married couple. As a result, partners of all kinds should enter into Property Status Agreements specifying who owns which property.
 
If the residential property is the separate property of one spouse or partner, and the other spouse or partner contributes to the upkeep and improvement of the residential property, the Property Status Agreement should specify the rights of the non-titled spouse or partner.
Sometimes, the titled spouse or partner gives the other spouse or partner a life estate in the property. Unfortunately, that works ONLY if there will never be a need for Medicaid assistance, as Medicaid counts a life estate as an asset.
 
Another form of property ownership is joint tenancy. In a tenancy in common, each co-tenant owns an undivided interest in the entire property. The disposition of such a tenancy is based on the provisions of the will or trust and may have to go through probate. A tenancy with rights of survivorship provides that the survivor will inherit all of the property, which passes outside of probate.
 
Estate planning should start with a review of all property interests.