I am Burt MacDonald. We are slowly turning into a country of renters as more and more millennials feel that they prefer renting, which requires much less commitment than owning a home. I have completely embraced this lifestyle as well. I never feel like I can live in a city for very long. It doesn't take long to see most of the things you'd want to see in a given city. So I have decided to create a blog where I will cover various aspects of real estate, from both a owner's and renter's perspective, to help anyone I can.
In the excitement of buying a home, many first-time homeowners forget the importance of estate planning. The addition of a home to your assets means that there are even more decisions to make regarding the division of your assets after your death. If you have not started estate planning or you are hesitant to do so, here is what you need to know:
Why Is Estate Planning Important?
Ideally, you should have had a plan in place before you bought the home. However, if you do not, you need to get one now because your estate has dramatically increased. Buying a home means that your heirs have more assets to fight over. Without a plan in place, one of your heirs could be pushed out of his or her share of your home and other assets.
An estate plan could also mean fewer surprises for your heirs. Once the plan is created, you can share some or all of the details with your heirs. They can now ahead of time what to expect. For instance, they will know if they are potentially inheriting a home that they will have to assume the mortgage for. Instead of having a heavy burden placed on them, they can look to the future, too.
What Should You Include in Your Plan?
The most obvious asset you should take care of in your estate planning is your new home. Your estate planning lawyer can help you with the closing for the home and help you create a plan for dealing with it. For instance, if you want to place the home in a living trust after a certain period, he or she can help with creating the trust and transferring the ownership of the home to the trust.
In addition to this, you also need to take an inventory of your assets. The inventory can not only help you determine what other assets you have in addition to the home, but it can be helpful if you have an issue that requires filing a claim on your homeowner's insurance at a later time.
You also need to select an executor. The executor will be responsible for working with your attorney to settle your estate and distribute the assets, including your home.
It is not unusual to take the time to celebrate owning a new home, but once you and your family are settled in your new home, start your estate planning.