3 ESTATE PLANNING CONSIDERATIONS FOR NEW HOME OWNERS
Congratulations on the purchase of your new home!
Whether this is your first home or you're upgrading or downsizing, purchasing a home is a big event in life. When major life events occur, it is important to update many different entities and documents. Below are a few things to consider now that you finally have the keys to your new home!
1. Update Your Address
Now that you are in your new home, it is important that you update your address with the appropriate entities. First, you'll want your mail forwarded from the post office. You can complete this online here.
Next, you'll want to ensure you don't miss any important tax notices or funds. So, you'll want to update your address with the Internal Revenue Service using Form 8822. You will also need to update your address with your local and state tax agencies.
2. Make Sure That Your Title and Deed Coordinate with Your Estate Plan
While it is still fresh in your mind, look at your new deed to determine how your new home is titled. Is your home in your name, jointly with a spouse, or in the name of a trust? Do you need to put your home in a trust? It is important to review your current estate plan after purchasing a home to ensure that it aligns with your financial and legacy goals.
For example, you may need to update your estate plan if your will had any specific instructions about your prior property. You may want to update that to reflect your new address and avoid issues down the road.
If this is your first home and you don't already have a will or trust, now is the time to start thinking about these things! Whether you choose to put your home in a trust or file a transfer-on-death (TOD) deed, an experienced estate planning attorney can help you assess your options and prepare.
3. Check Your Life Insurance Coverage and Beneficiary Designations
Unless you were fortunate enough to pay cash for your home, chances are you now have a mortgage. As unfortunate as it is to think about, there is always a possibility you may die before paying off your mortgage.
You may want to consider whether you have enough life insurance to pay off the mortgage. This is especially important if you have a surviving spouse or children who will likely continue to reside in the home. They will need enough funds to ease the largest monthly expense they will probably have. Life insurance can provide valuable funds during this emotionally and financially difficult time for your family.
When you buy a new home, it is also a great opportunity to double-check your beneficiary designations. Life changes happen so quickly that sometimes updating beneficiary designations can be overlooked. If your designations don't align with the rest of your estate plan, you may end up inadvertently disinheriting a family member, having a large sum of money fall directly into the hands of an incapable individual (like a young adult or minor child) without any guidelines, or having your hard-earned money and property go to someone you no longer want to benefit from your life insurance.
Lastly, now that you have a home (and homeowner’s insurance) you may want to call your insurance agent and update them. Make sure you are getting any discounts to which you are entitled. Many insurance companies will offer discounts when you bundle services. In addition, homeowners often get discounts that renters do not.
The Estate Planning Attorneys at DuPont & Blumenstiel Are Here to Help
Buying a new home is a big step, and we are here to help you protect your loved ones and your new investment. Give us a call at 614-389-9711 so we can help ensure that your new purchase and your estate plan are working together to accomplish your goals.
About the Author
Having earned her law degree in 1997, Laura Blumenstiel has nearly three decades of legal experience. She is deeply committed to providing compassionate and effective legal services for our clients. Each day, she finds fulfillment in meeting with clients and meticulously crafting trusts and estate planning documents. Additionally, she works diligently on estate administration through probate court proceedings. She's passionate about helping individuals and families plan for the future and guiding them through the probate process during difficult times. She strives to make a genuine connection with all her clients.