Holding Syndication Fund as Community Property

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My wife and I live in California. Most of our accounts are set up as community property with right of survivorship. I'm going to invest in a real estate syndication fund where the properties are based out of state.

Does anyone know if my wife and I can hold the syndication investment as community property with right of survivorship? The default on the paperwork seems to be joint tenancy. I'm just not sure if the actual properties being located out of state is some type of barrier. I would think that it would be fine given that we live in CA, but am not sure.

Of course, I'll also work with the company. But I'm sure they're not allowed to give any advice. So if anyone sees any obvious legal or other issues, please let me know.

Thank you!

You aren't buying the real estate, you are buying interests in an LLC (or an LP), so the state where the property is located shouldn't matter. I'm not sure if there are legal obstacles regarding the state laws where the entity is organized, however.

Having said that, we have tons of investors that hold their interests as community property.  Our entities are all Delaware.  But that doesn’t mean that they are in the right to do so.  We haven’t had a legal challenge to any of those holdings to test it, and since we don’t give legal advice I also haven’t asked our counsel for guidance on this issue.

I suspect that the state law where you reside is what governs, but I’m sure that there are some attorneys on the forum that can correct me if that’s incorrect.