When you buy your first home, or even a second, it is typical for a couple to take ownership as "Joint Tenants with Rights of Survivorship." This is a common way to hold title, but it may not be the most appropriate form of ownership for you.

Joint Tenancy with Rights of Survivorship is a co-ownership of an undivided interest in a property or an asset. In simpler terms, each owner has title to 100% ownership, a concept we find hard to understand. An important component to this type of ownership is that it comes with a "built-in" Will. In the event of the death of one of the owners, the ownership automatically vests, or is transferred to, the Survivor without regard to the decedent’s will or any trust arrangements. The “Survivorship" language of this Joint Tenancy supercedes any other directive that may be in place.

While this may appear to be simple and an easy transfer of property interest, it is a problem in estate planning.

Speak to your attorney and have him explain the alternative use of Tenants-in-Common for property ownership. This is a different method of Joint Ownership where title is taken with the husband and wife each owning 50% (versus 100%) of the property. Additionally, Tenants-in-Common gives each Joint Owner the right to name a beneficiary other than the co-owner (spouse), or even use the benefits of a Will or Trust.

A Joint Ownership with Tenants-in-Common can be significantly more efficient in your estate planning. This type of ownership should also allow you to take advantage of the current estate tax credits that are missed with Joint Tenants with Rights of Survivorship.

Take a moment to discuss this with your attorney; I think it will be a valuable conversation. -S.S.

Is it possible that insurers and the highway department are teaming up to reduce deer collisions? A strange story in PA claims that coyotes are being released into the wild in order to control deer population and reduce collisions. The PA Game Commission dismisses the rumor for what it is - absurd. (2004, AP)

Back up of Sewers or Drains
This coverage is for losses resulting from the Back up of a sewer or drain; or losses resulting from water overflow from a sump pump.

If your home is in danger of water Back up from clogged drains/gutters or other water overflow not attributed to flooding or saturated ground water you might want to consider a move to AIG. AIG is one of the few insurers who still provide coverage for this type of risk.

We will be introducing some of the features of different policies in upcoming newsletters.