Planning for the future may not seem necessary for those who are young and healthy, but it is essential for most New Jersey adults. If you are a first-time homebuyer, there are certain steps you can take that will allow you to protect your interests and ensure you have the full protection you need for your new home as well. In fact, your home should be a critical part of your estate plan.
When you think about an estate plan, you may think about a will. This is the basic building block for any estate plan, allowing you to outline what you want to happen to your personal property in the event of your passing. However, there are other tools available that allow you to have a more complete plan, including tools that can protect your home and allow you to have control over what will happen to it in the future.
What tools do you need?
Buying a home is one of the most significant legal and financial decisions you will make in a lifetime. It’s an investment, and you should have the final say over what could happen down the road. If you pass without an estate plan, state laws will determine what will happen to your home. Some things that may be helpful to you include:
- Talk with your loved ones to discuss your objectives for your home. This may prevent confusion and disputes.
- Consider whether any heirs who inherit your home will owe money. This may be a burden on your loved ones.
- Your mortgage doesn’t go away just because you suddenly pass away. Those left behind will have to address how to handle your home if you did not outline instructions in your plan.
Home ownership is an exciting step, but you would be wise to consider what this means for you beyond your mortgage payments and insurance. It is prudent to also think about how to protect this asset in case the unexpected happens.
Planning for the future today
It may seem morbid to plan for what will happen if you pass away or become incapacitated at some point in the future, but it is a smart step for all adults. If you are a new homeowner, you may want to consider how this purchase could necessitate adjustments to existing plans. If you do not yet have an estate plan, buying a home is a step that should indicate that this type of planning is necessary.