Legal Definitions - Uniform Disposition of Community Property at Death Act

The Uniform Disposition of Community Property at Death Act is a model law designed for states that follow common law property rules (meaning they don't typically recognize community property). Its purpose is to protect the property rights of spouses who move from a community property state to a common law state. Specifically, it ensures that property acquired as community property in the original state retains its character as such upon the death of one spouse, even after the couple has relocated. This prevents the surviving spouse from losing their rightful share of assets accumulated during their marriage in a community property jurisdiction, unless they had previously taken steps to change or sever those community property rights.

• Example 1: Protecting a Surviving Spouse's Share

  Maria and David lived in California, a community property state, for 25 years. During that time, they purchased a family home and accumulated significant retirement savings, all considered community property under California law. After David retired, they moved to Ohio, a common law state. Five years later, David unexpectedly passed away without a will. Under Ohio's standard common law rules, the assets might be treated as David's separate property, potentially limiting Maria's inheritance to a statutory share that is less than her community property entitlement.

  Illustration: Because Ohio has adopted the Uniform Disposition of Community Property at Death Act, Maria can assert her community property rights to the home and retirement savings acquired in California. The Act ensures that these assets are recognized as community property, allowing Maria to claim her half share, just as she would have if they had remained in California, thereby protecting her financial security.

• Example 2: When Rights Have Been Altered

  Sarah and Tom married in Arizona, a community property state, and together built a successful consulting business over 10 years. The business was considered community property. Before moving to Massachusetts, a common law state, they signed a comprehensive postnuptial agreement. This agreement explicitly stated that, for estate planning purposes, their shares in the business would be treated as separate property, with each spouse owning 50% outright, rather than as community property. Years later, Tom dies.

  Illustration: In this scenario, even though Sarah and Tom moved from a community property state to a common law state, the Uniform Disposition of Community Property at Death Act would likely not apply to the business. Their postnuptial agreement "severed or altered" their community property rights by converting the business into separate property. Therefore, Tom's 50% separate property share of the business would be distributed according to his will or Massachusetts' intestacy laws for separate property, and Sarah would receive her 50% separate property share, without needing to invoke the Act to establish a community property claim.

• Example 3: Scope of the Act – What It Doesn't Cover

  Emily and Robert lived in Nevada, a community property state, for 15 years, where they purchased a rental property. They then moved to Pennsylvania, a common law state. After moving to Pennsylvania, they jointly purchased a new primary residence. Robert dies five years later.

  Illustration: The Uniform Disposition of Community Property at Death Act would apply to the rental property acquired in Nevada, ensuring Emily's community property rights to that asset are recognized in Pennsylvania, even though Pennsylvania is a common law state. However, the Act would *not* apply to the primary residence they purchased *after* moving to Pennsylvania. That property would be treated according to Pennsylvania's common law property rules, as it was acquired while they were residents of a common law state, not a community property state. This highlights that the Act specifically addresses property acquired *before* the move from a community property jurisdiction.