Estate planning is probably one of the last things you’re thinking about during the purchase of a new home. However, knowing how current decisions can affect the future will help you make sure that the proper precautions are in place. If you’re not quite sure where to start, take a closer look at these tips on determining how best to protect your investment.
A Guide to Estate Planning With a New Home
1. Select an Executor
Your home is a valuable asset and will require someone trustworthy to handle its distribution. If you pass without a will, the state simply selects the closest living relative and leaves it up to them to deal with as they wish.
Naming a person to serve as your executor will ensure that the property goes to the right individual. If you choose to divide it among your children, the executor will take charge of putting it on the market and distributing the money from the sale.
2. Name a Beneficiary
Make sure your family knows who is next in line to inherit the property. This can be done by constructing a will or legally naming them as a co-owner. Leaving it up to your loved ones to figure out will only result in disputes, especially when it comes to potential upgrades and general maintenance. Avoid any misunderstandings by creating a detailed list of specific guidelines for your beneficiary.
3. Secure Quality Insurance
While it’s common to leave the property to a loved one after you pass, there’s a chance that they might not have the income or savings to maintain the mortgage. Rather than risking them going into debt, set up an insurance policy that covers the entire amount. They can then use this to pay off what’s due. Remember to account for any estate taxes or legal expenses they may accrue during the probate process.
If you’re just completing the home buying process, reach out to the Law Office of George N. Nam in Aiea, HI. This local Oahu professional has more than 28 years of experience as an estate lawyer for Pearl City, Waipahu, and Kapolei, and he understands the intricacies of going through probate. He utilizes the most efficient estate planning techniques and provides the resources his clients require to construct their wills and trusts. Call (808) 487-9455 to schedule a consultation, or visit the website for additional information on his services.