Becoming a homeowner is a major milestone. And, as is the case with most monumental milestones in life, it should serve as genuine inspiration to either create or update your estate plan.
Whether you’ve bought your first home or upgraded to a new one, real estate is a valuable asset that should be protected and planned for as part of your long-term financial and personal goals. Without an updated estate plan, your home could become a source of confusion or conflict for your loved ones down the road.
What do you need to do?
One of the most important reasons to address your home in your estate plan is to control what happens to it if you pass away. Without a will or trust in place, your property will be distributed according to your state’s intestacy laws, which may not reflect your wishes. For example, your home could go to family members you did not intend to inherit it, or it could trigger lengthy probate proceedings that delay access or use by your loved ones.
If you already have an estate plan, buying a new home is the perfect time to revisit your documents and update them accordingly. Your will, trust and/or other documents should reflect your current assets and living situation. A revocable living trust, for instance, can be an excellent way to manage your home and avoid probate altogether. Placing your home in a trust can allow it to transfer directly to your chosen beneficiaries upon your death, reducing delays and legal costs.
For married couples or co-owners, it’s also important to understand how your property is titled. The way your deed is worded—such as joint tenancy with right of survivorship or tenancy in common—can significantly affect what happens if one owner dies.
Ultimately, your home is more than just a financial investment—it’s part of your legacy. A skilled legal team can help you protect that legacy by ensuring your wishes are clearly stated and legally enforceable. If you’ve recently become a homeowner, now is the time to create or update your estate plan so your home and your future are as secure as they can be.