Share:

Buying a home will likely be the single largest financial transaction you’ll ever make. Your home may become the cornerstone of your personal wealth, which can dramatically complicate your estate plan. Below are a few estate planning tips every new homeowner should take to prevent conflict and ensure their wishes are respected.

What Are Some Estate Planning Tips for New Homeowners?

1. Prepare a Will

If your spouse is also listed on the lease, they will automatically inherit your interest in the property if something happens to you. However, if you both pass away, your will allows you to decide who should inherit your house.

Without a will, your estate will likely be divided according to the laws of your state, so your house may go to someone you barely know. Preparing an estate plan ensures your home goes to the individual you choose.

2. Buy Life Insurance

estate planning

If you pass away unexpectedly, your spouse or beneficiary may not have the resources to keep up with the mortgage payments and maintenance. Most estate planning professionals recommend buying enough life insurance coverage to pay off the house. This can provide peace of mind and ensure your loved ones have a stable home.

3. Distribute Assets Equally

To minimize disputes and resentment between your children, most estate planning professionals recommend dividing your assets equally. If one child gets your house in the will, the other children should receive a greater share of your retirement savings and other assets.

However, your house is likely the most valuable asset you possess, so you may not have enough wealth to give each child an equal share. Life insurance can also round out the inheritance, ensuring none of your children receive significantly more than the others.

 

Estate planning can be confusing and intimidating, but a skilled attorney can simplify the process of protecting your interests. With offices in Nashua and Charles City, IA, Cronin Skilton & Skilton, P.L.L.C provides detailed legal guidance to families throughout the region. Visit their website for more on their estate planning services, call (641) 228-3318 to speak with an attorney in Charles City, or call (641) 435-2462 for a consultation at their Nashua office.

tracking