Each method of taking title has certain significant legal and tax consequences. therefore, you are encouraged to obtain advice from an attorney, accountant or other qualified professional. A brief description of the ways to take title follows: 1. SOLE AND SEPARATE - This method is for a single or a married person dealing with his or her sole and separate property. (Note: If a married person acquires title as sole and separate, his or her spouse must execute a disclaimer deed to avoid the presumption of community property.)

2. COMMUNITY PROPERTY - Requires a valid marriage between two persons. - Each spouse holds an undivided one-half interest in the estate. - One spouse cannot partition the proper- ty by selling his and her interest. - Requires signatures of both spouses to convey or encumber. - Each spouse can devise (will) one-half of the community property. - Upon death the estate of the decedent must be "cleared" through probate, affidavit or adjudication. - Both halves of the community proper- ty are entitled to a "stepped-up" tax basis as of the date of death.

3. JOINT TENANCY WITH THE RIGHT OF SURVIVORSHIP

- Parties need not be married; may be more than two joint tenants.

- Each joint tenant holds an equal and undivided interest in th estate, unity of interest.

- One joint tenant can partition the property by selling his or her joint interest. - Requires signatures of all joint tenants to convey or encumber the whole.

- Estate passes to surviving joint tenants outside of probate.

- No court action required to "clear" title upon death of joint tenant(s).

- Deceased tenant's share is entitled to a "stepped-up" tax basis as of the date of death.

4. COMMUNITY PROPERTY WITH THE RIGHT OF SURVIVORSHIP

- Requires a valid marriage between two persons.

- Each spouse holds an undivided one- half interest in the estate.

- One spouse cannot partition the property by selling his or her interest.

- Requires signatures of both spouses to convey or encumber.

- Estate passes to the surviving spouse outside of probate.

- No court action required to "clear" title upon the first death.

- Both halves of the community property are entitled to a "stepped-up" tax basis as of the date of death.

5. TENANCY IN COMMON

- Parties need not be married; may be more than two tenants in common.

- Each tenant in common holds an undi- vided fractional interest in the estate. Can be diproportionate, e.g., 20% and 80%; 60% and 40%; 20%, 20%, 20% and 40%; etc.

- Each tenant's share can be conveyed, mortgaged or devised to a third party.

- Requires signatures of all tenants to convey or encumber the whole.

- Upon death the tenant's propor- tionate share passes to his or her heirs by will or intestacy.

- Upon death the estate of the de- cedent must be "cleared" through probate, affidavit or adjudication.

- Each share has its own tax basis.

6. CORPORATION

- The corporation must be duly formed and in good standing in the state of incorporation.

7. GENERAL PARTNERSHIP

- The general partnership, defined as a voluntary association of two or more persons as co-owners in a business for profit, must be duly formed under the laws of the state of the formation of the partnership.

8. LIMITED PARTNERSHIP

- Defined as two or more persons under the laws of Arizona, or another state, and having one or more general partners and one or more limited partners.

- A certificate of limited partner- ship must be filed in the Office of the Secretary of State.

Be sure to ask the advice of your attorney and/or accountant in determining which method is best for you.