Estate planning allows you to determine what happens to your assets when you pass on. Whenever you acquire an asset—like a new home—it’s important to incorporate this into estate planning documents, like a will or trust. An attorney can help. Discover what new home buyers should know about estate planning below.
3 Estate Planning Considerations for New Home Buyers
1. Get the Appropriate Insurance
A house is a big investment, and you likely took out a mortgage to help pay for it. When you pass on, you want to make sure your loved ones can still afford to keep the home. Taking out a life insurance policy with adequate coverage to pay for this expense is a savvy move and can bring you and your family peace of mind.
2. Determine Who to Leave the Property To
Most people leave their property to their spouse or to their children. If you leave your property to your spouse, consider establishing joint ownership, also known as joint tenancy. This allows the house to pass directly to your spouse when you pass on. There’s no need for it to be put in a will or trust.
3. Pick an Appropriate Estate Planning Tool
If joint tenancy isn’t an option for you—or you simply prefer not to use this route—you’ll have to pick a different estate planning tool. You can write a will, detailing that the house should go to a certain person when you pass on.
Another option is to put it in a trust. By choosing this possibility, you help to avoid the probate process that’s associated with a will. An attorney can advise on the right option for your needs.
If you’ve bought a house and need to update your estate planning, consult Morrow Gordon & Byrd LTD of Newark, OH, for assistance. These law firm has been serving the community since 1993, providing proven expertise you can count on. Visit their website to learn more about their team and call (740) 345-9611 for a consultation with an attorney.