Community property

In community property states, there is an additional way that married couples can hold title to their real estate property - as community property assets.

Community property title is often a more favorable way for married couples to own property because it allows the spouse to not only inherit the property without estate tax, but also be able to take a step up in basis.

That means that the surviving spouse inherits at current fair market value for the real estate property and thus would have no tax due upon an immediate sale.