An estate plan is important because it determines the distribution of your assets when you die. A new homeowner should update their estate plan because they may have moved states, it will help their heirs avoid probate, and they have a change in assets. An updated estate plan will ensure you are in control of your assets.

You May Have Moved States

Updating your estate plan when you own a home in a new state will ensure that you have a compliant estate plan. The taxes on inheritance of assets, such as houses, can vary from state to state which is why you need to reflect the move in your estate plan. It is vital that you update your estate plan to reflect your new address in your new state. However, the laws can change within the same state which is why it is important to update your estate plan for a new home even if you are living within the same state.

Avoid Probate for Your Heirs

Updating your estate plan with your new home is important to avoid probate for your heirs. Probate is a lengthy process that can take years to complete. This process may not guarantee that your wishes are carried out and can eat away at your assets due to the cost. One way to avoid this is to place your home in a trust. When you die, the property would then be owned by your beneficiary who would be able to do with it as you wish. This would keep it safe from creditors.

Change in Assets

Any time you have a change in assets you need to update your estate plan. A new home purchase is a change in assets because it holds value and will be something you want to pass on to your heirs. Whether your new home is an upgrade or a downgrade, these changes can impact how your assets are distrusted and should be updated in your estate plan.

New homeowners should update their estate plan because it puts them in charge of their future. A new home purchase is a good time to update the plan as well as any other life events such as the birth of a child. You should also periodically work with your attorney to ensure your estate plan is always up to date even after your home purchase.

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