Buying a new house is a significant milestone that can inspire a sense of accomplishment and excitement. However, it is also a significant responsibility in a host of ways. As a result, buying a house should also incentivize adults to either create or revisit their estate plan.
If you’re a new homeowner, you can use your estate plan to both safeguard your new investment and to convey a sense of your values and overall legacy in the ways that you wish your property to be treated in the event of your death.
Whether you’re creating one for the first time or updating an existing plan, incorporating your new property into your strategic estate planning approach is important to better ensure that your assets are managed according to your wishes.
Why make this effort?
Your new house is likely one of your most valuable assets. To better ensure that its ownership is managed according to your wishes upon your passing, you need to address this asset in your estate plan. Without proper documentation, your property could be subject to state intestacy laws, which may not align with your desires.
You may want to consider placing your home in a living trust, which can help your beneficiaries avoid probate. Making this effort now can allow your loved ones to benefit from a smoother and faster transfer of ownership. This approach also results in greater privacy, as trusts are not subject to the public record process that probate entails.
If you’re like most people, you don’t like it when the state tells you what to do. Realizing that the state will dictate what will happen with your new home upon your passing may be all the inspiration you need to start your estate planning or update your existing plan.