Estate Planning Awareness Week: 3 Tips for Every New Homeowner
Buying a new home is an exciting milestone, and with it comes the perfect opportunity to revisit your estate plan. At NC Planning, we understand that your home is one of your most valuable assets, and we’re here to help you protect it. October 21-17 is Estate Planning Awareness Week and throughout the week, we’ll be sharing valuable tips and insights on how new homeowners can align their estate planning goals with their recent purchase. From updating your address to structuring your life insurance and reviewing your beneficiary designations, estate planning with NC Planning can provide the peace of mind that your new investment is secure for the future. Our team at NC Planning wants to congratulate you on the purchase of your new home! Whether this is your first home or you are upgrading or downsizing from your current home, the purchase of a home is a big event in your life. When major life events occur, it’s important to have a plan in place so that you are properly prepared for the future. Below are a few things to consider now that you finally have the keys to your new home.
Update Your Address
Now that you are in your new home, you will need to update your address with the appropriate entities. The post office has a form you can fill out, and If you can’t make it into the post office you can also update this information on their website. This will assist them in forwarding your mail to you.
To avoid missing any important tax notices or refunds, you will also want to update your address with the Internal Revenue Service using Form 8822, as well as with the North Carolina tax agency. Address updates are an important detail, but larger decisions about how your home is incorporated into your overall estate plan are equally important. Our attorneys can guide you through that process so that every legal aspect is covered.
Make Sure That Your House Title Coordinates with Your Estate Plan
Your new home should be titled in a way that reflects your estate planning goals. If you haven’t already, this is a good time to consult with an estate planning attorney to make sure your home ownership aligns with your broader estate plan.
For example, if your home is titled in your name individually but you have a trust, you may want to transfer the property into the trust to avoid probate. Alternatively, we can help you set up a Transfer-On-Death (TOD) deed or Lady Bird deed to name beneficiaries directly. This is particularly important if you want to pass your home on to a spouse, children, or loved ones without unnecessary complications or delays.
At NC Planning, we can review your new deed and estate plan so that everything works together seamlessly. Whether it’s updating a trust, creating new documents, or discussing the right title options, we’ll make sure your home is protected according to your wishes.
Check Your Life Insurance Coverage and Beneficiary Designations
Unless you were fortunate enough to pay cash for your new home, chances are you now have a monthly mortgage expense. In order to protect your loved ones, it’s important to prepare for the possibility of dying before you pay off your mortgage. You may want to consider whether you have enough life insurance to pay off the balance of the mortgage. This is especially important if you have a surviving spouse or children who will likely continue to reside in the home, as it will help provide sufficient funds to cover one of their largest monthly expenses. Life insurance can provide valuable funds during what is usually an emotionally—and sometimes financially—difficult time.
When you buy a new home, it is the perfect time to review your beneficiary designations on your life insurance policies. Life changes happen so quickly that sometimes updating beneficiary designations can be overlooked. If your designations do not align with the rest of your estate plan, you may end up inadvertently disinheriting a family member, having a large sum of money fall directly into the hands of an individual (for example, a young adult or minor child) without any guidelines, or having your hard-earned money and property go to someone you no longer want to benefit from your life insurance.
Lastly, now that you have a home and homeowner’s insurance, call your insurance agent to make sure that you are getting all of the discounts to which you are entitled. Many insurance companies will offer discounts when you bundle services. If you already have car insurance through a carrier and use the same company for your homeowner’s insurance, you may be able to get a better rate than if you obtained the policies at separate carriers. In addition, homeowners often get discounts that renters do not.
Our estate planning attorneys can help you evaluate your life insurance coverage and beneficiary designations to make sure that they are in line with your estate plan. We can also provide advice on structuring beneficiary designations to avoid any unintended consequences, such as minor children receiving assets without protective measures in place.
NC Planning is Here to Help
Buying a new home is an exciting step, but it is also a perfect opportunity to review your estate plan. At NC Planning, we’re committed to helping you protect your home, your family, and your future. Contact us today to schedule a consultation.
