Estate planning is probably the last aspect on your mind when buying a house. However, it’s essential for preserving personal assets and ensuring that they’re ready to pass along to the next generation. If you’re unsure of where to begin, take a closer look at the following. Understanding the basics should reveal the importance of implementing certain precautions. 

What Are Some Key Estate Planning Tips After Buying a New Home?

1. Select a Power of Attorney

A power of attorney is the person who will be handling the closing of the estate after your passing. They should be someone who’s trustworthy and doesn’t have a vested interest in the inheritance. Otherwise, you risk them not honoring your wishes and taking a larger portion for themselves.

Before naming them to the position, ask if they’re up to the task. This will allow an opportunity to explain the division of assets and ensure that they recognize what’s expected of them. 

2. Secure Insurance

Taking out an insurance policy that’s large enough cover the cost of the mortgage is vital. It prevents those who suddenly inherit the property from having to cover the expenses and produces an instant peace of mind. This ensures the surviving members of the family can work through their grief without having to worry about losing the house. 

3. Create a Will

A will is the document that contains the details of how to divide up the assets. It can include directions on how to continue caring for the property as well as who is going to inherit it. If there is more than one child in the relationship, then giving it to them to share is a common option. 

You could also consider granting it to the one who’s more responsible while giving the others a comparable amount. Bringing it up in conversation will reveal whether they have any input and might lower the risk of disputes.

Start the estate planning process today by working with Lance S. Cox, Attorney at Law in Cincinnati, OH. He has more than 45 years of experience and commits to creating custom solutions for each of his clients. A Certified Public Accountant is also available to ensure your affairs are in order, so call (513) 528-6000 to schedule a consultation. Visit his website for additional information on the services he provides.