Question

Is an inheritance considered community property?

Answer 1

Short answer: Usually no — an inheritance is generally treated as separate property, not community property. But the answer depends on where you live and what you do with the inheritance after you receive it.

Key points
- Most U.S. states (and most legal systems) treat inheritances and gifts received by one spouse as that spouse’s separate property.
- In community property states (AZ, CA, ID, LA, NV, NM, TX, WA, WI — and Alaska has an optional community-property system), the same basic rule applies: inheritances are ordinarily separate property. However the community can acquire rights if the inheritance is commingled or transmuted.
- Common ways a separate inheritance can become community property:
- You deposit the inheritance into a joint bank account or convert it into property titled in both spouses’ names.
- You use inheritance funds to pay community expenses without keeping records.
- Your efforts or community funds cause active appreciation of the inherited asset (in some jurisdictions the community may claim a share of that increase).
- Even when the inheritance remains separate, the community may have reimbursement claims if community funds were used to improve or preserve the separate asset (or vice versa).
- Prenuptial/postnuptial agreements can change how inheritances are treated.

What you can do
- Keep inherited funds in a separate account in your name, and document their source.
- Avoid retitling inherited assets into joint names unless that’s your intention.
- Keep records of expenditures and any community contributions to separate assets.
- Consult a family-law attorney in your state for specifics and for tracing/reimbursement rules.

If you tell me your state and a few facts (how the inheritance was received, where the money/title is now, whether you’re married when it was received), I can give a more specific answer.