Purchasing a home marks a significant milestone in your life journey. Whether you're a first-time buyer or moving to accommodate your changing needs, becoming a homeowner represents a major life transition. During such important life changes, it's crucial to ensure your future plans are properly aligned. At Slowik Estate Planning, we're here to guide you through the necessary adjustments to your estate plan – whether you're starting from scratch or updating an existing will or trust. Here are three key considerations for new homeowners.
1. Address Change Notifications
One of your first priorities should be updating your address with key organizations. The U.S. Postal Service offers a straightforward change-of-address form available both in-person and through their online portal. This ensures continued delivery of your important mail.
Additionally, it's essential to notify tax authorities of your move. Submit Form 8822 to the Internal Revenue Service and contact your state's tax department to update your information. This helps prevent delays in receiving important tax documents and refunds.
2. Align Your Property Title with Estate Planning Goals
Review your new property deed carefully to verify how the title is structured. Whether the property is held individually, jointly with a spouse, or under a trust should reflect your broader estate planning strategy. If you haven't already discussed title options with an estate planning professional, now is the perfect time.
Several scenarios may require attention:
- If your existing estate plan mentions a previous property by address, those provisions should be updated
- For those with a trust-based plan, ensure your new home's title is properly held in the trust's name
- Consider whether a transfer-on-death (TOD) deed or Lady Bird deed might be appropriate in your state
- Update provisions if you want the property held in trust for specific beneficiaries, such as minor children
3. Review Insurance Coverage and Beneficiary Designations
Most homeowners carry a mortgage, making life insurance coverage particularly important. Consider whether your current policy provides adequate protection to cover the outstanding mortgage balance. This consideration is especially crucial if you have family members who will continue living in the home – having sufficient insurance can help them maintain financial stability by eliminating or reducing housing costs during a difficult transition.
The home-buying process presents an ideal opportunity to review your beneficiary designations across all policies. These designations can become outdated as life circumstances change, potentially leading to unintended consequences such as:
- Accidental disinheritance of family members
- Direct distribution of assets to minors or young adults without proper controls
- Benefits going to outdated beneficiary choices
Finally, contact your insurance provider about potential cost savings. Many insurers offer multi-policy discounts when you bundle homeowners’ insurance with other coverage like auto insurance. Additionally, homeownership often qualifies you for discounts that weren't available as a renter.
Professional Estate Planning Guidance Available
Investing in a home represents a significant milestone and protecting that investment through proper estate planning is crucial. At Slowik Estate Planning, we're ready to help ensure your estate plan and new property work together seamlessly to achieve your goals. Contact us today to review your situation and make any necessary adjustments.
