Congrats on the purchase of your new digs!
Whether this is your first home, or you’re moving up, downsizing, or making a change, buying a home is a significant milestone. When major life events occur, it’s important to take some time to ensure your plans for the future are aligned with your current estate plan, or if a few tweaks may be needed.
Now that you’ve got the keys to your new home, we’re sharing some key tips to ensure things run smoothly and that your property is properly nested within your overall plan...
Update Your Address
One of the first things you want to do is update your address with the necessary entities (obviously). The U.S. Postal Service makes it easy to forward your mail through a simple form, either at your local post office or online.
You should also make sure to notify the Internal Revenue Service (use IRS Form 8822) and your state tax agency to avoid missing any important tax information or refunds.
Is Your New Home is Aligned with your Estate Plan?
Take a moment to review your new home’s title (deed) – does it line up with your estate planning goals?
Ideally, you would have discussed the best way to title your new property with your estate planning attorney before closing —whether in your name, jointly with a spouse (typically with “rights of survivorship”), or in the name of your trust.
- If you have a trust in place, make sure the home is titled in the name of the trust – not in your personal name – to avoid probate and ensure efficient administration of your estate.
- Alternatively, a transfer-on-death (“TOD”) deed may also be an option – this depends on your state’s laws and other important considerations that you should discuss with your estate planning attorney.
- If your estate plan included specific provisions related to your previous home (i.e., leaving that property to a particular person), you may need to update your plan... It’s also crucial to update your estate plan if you have specific wishes for how your property will be handled in the future, whether it's being passed to a loved one or held in trust for a minor child.
Check Your Insurance Coverage + Beneficiary Designations
Life Insurance: If you have a mortgage, it’s crucial to think about how it would be handled if something were to happen to you. Review your life insurance coverage to ensure it’s enough to cover the mortgage balance, especially if you have a spouse or children who will remain in the home. Life insurance can provide valuable funds during what is usually an emotionally—and sometimes financially—difficult time.
- Homeowner's Insurance: Reach out to your insurance agent to make sure you’re taking advantage of all available discounts. Bundling your homeowner’s insurance with your auto or other policies can often lead to significant savings.
- Beneficiary Designations: When you buy a new home, it’s a great opportunity to double-check your beneficiary designations (i.e., for your life insurance + retirement plans) to ensure they align with your overall estate plan. Keeping these up to date can prevent potential conflicts or unintended outcomes, such as money going to a young child outright, without protection, or worse – to someone who you no longer wish to benefit!
We’re Here to Help!
Buying a new home is a big deal, and we're here to help you with planning to protect both your loved ones and your new investment.
Reach out to us if you'd like help ensuring that your new purchase and your estate plan are working together to accomplish your goals.
It’s easier than ever to schedule a consult with our Estate Planning attorneys – if you’d like more info, send us a Consult Request!
By: Tiffany Ballenger Floyd, Esq. | Managing Partner | Licensed in CA + NV
Phillips Ballenger | Estate Attorneys | (702) 997-5701 | phillipsballenger.com
PB Law Bio Site | Helpful Links + Info
Photo Credit: Thanks to HiveBoxx (@hiveboxx) | Unsplash Photo Community