Community property
Certified Financial Planner glossary · Certified Financial Planner
Definition
A marital property regime in which property acquired during marriage is owned equally, and in which both halves receive a basis step-up at the first death.
Community property in plain English
A married couple in a community-property state funded a taxable brokerage account with wages earned during the marriage. At the first death, both halves of that community property can receive a basis step-up. The regime treats property acquired during marriage as owned equally, and that double step-up is a major planning lever. Common-law states usually step up only the decedent's half of jointly held assets. Confirm the state's marital property rules before quoting basis.
Practice Community property
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