A married couple in California or another community property state which own appreciated property may be advised to have a written document reflecting that such ownership is as “community property.” This writing may be in the form of an agreement or deed. The advantage is that upon the death of one, the entire property obtains a basis adjustment to the fair market value as of the date of death (“step-up” in basis). If the property declined in value since it was purchased, the result will, unfortunately, be a step-down in basis. You should consult with an experienced estate planning or tax attorney before changing the title to your assets.