Whether this is your first home or you are transitioning to a new space, becoming a homeowner is a significant milestone. With such a major life event comes the responsibility of planning for your future.
Here are three key estate planning tips to consider now that you’ve purchased your new home:
- Update Your Address
After moving into your new home, one of the first steps is to update your address with the relevant entities. Start by informing the United States Postal Service (USPS) so your mail can be forwarded to your new address. You can do this by visiting your local post office or through their online platform.
Additionally, use Form 8822 to update your address with the Internal Revenue Service (IRS) and your local state tax agency. This will ensure that critical tax notices or refunds are directed to the right place, helping you avoid delays or complications.
2. Align Your House Title with Your Estate Plan
Now that you’ve purchased a home review your new property’s title to ensure it aligns with your estate planning goals.
Whether the property is in your name, jointly with a spouse, or in the name of a trust, it should reflect the intentions of your estate plan. If you intend to avoid probate, ensure that your home is titled in your trust’s name or consider using a transfer-on-death (TOD) or Lady Bird deed if recognized in your state.
If you’d like to leave your property to someone specific, such as a spouse or minor children, make sure the provisions of your estate plan cover these wishes.
3. Review Your Life Insurance and Beneficiary Designations
Homeownership often comes with a monthly mortgage payment. It’s crucial to ensure that your family is financially protected in case of your untimely passing.
Review your life insurance coverage to determine if it’s sufficient to cover the mortgage balance. This will provide peace of mind, ensuring mortgage payments don’t burden your surviving loved ones.
Furthermore, take this opportunity to review and update your beneficiary designations. Life circumstances change over time, and outdated designations could unintentionally disinherit a family member or direct funds to someone you no longer wish to benefit. Confirm that your designations align with your estate plan and provide proper guidelines for handling these funds.
We’re Here to Help
Purchasing a home is a huge step, and we’re here to help you protect your new assets and loved ones. Contact us today to ensure your homeownership and estate planning goals are fully aligned.
