If you have managed to purchase your first home recently, you have probably entered the housing market at the right time. After all, according to reporting from NPR, house prices continue to climb at record levels. This makes purchasing a new home simply out of reach for many first-time buyers.
The paperwork you completed when purchasing your new home was probably extensive. Still, now is not the time to let paperwork fatigue get the better of you. As a first-time homebuyer, you should consider creating a comprehensive estate plan.
What happens to your home?
Even if you are young and healthy, you simply cannot predict the future. If you die, you probably want to retain some control over what happens to your home. Your estate plan can protect your investment by removing all doubt and leaving your home to someone you love. You can also decide to put your home into a trust.
Remember if you do not make a place for your house in your estate plan, intestacy laws may lead to an outcome you do not want.
Who pays the mortgage?
If you die before you own your home outright, the mortgage company is likely to want an immediate payoff of your loan’s balance. You probably do not want your beneficiaries to have this burden. Therefore, you may want to put funds in a trust to cover the remainder of your mortgage.
If you have already drafted your estate plan, you should review it after your home purchase to ensure it continues to reflect your genuine wishes. Ultimately, though, whether you write a new estate plan or update an existing one, you are sure to appreciate the peace of mind that comes with protecting your new home.