Many Indiana residents will be purchasing homes this year, which is often both an exciting yet stressful experience. Working with experienced real estate agents is one way to alleviate stress and to get the best return on your investment possible. Such agents aren’t the only assets to have on hand when you’re getting ready to buy a house. In fact, new homeowners can benefit from quality estate planning support, as well.
You might wonder what estate planning has to do with purchasing a home. It can be beneficial in numerous ways. Many new homeowners find that executing an estate plan gives them peace of mind, especially with regard to knowing exactly what will happen to their home if they were to pass away.
Your new home is likely your largest asset
Buying a house is probably going to be one of the biggest investments you’ll ever make. Don’t you want to have a say in what happens to your house if you die or become incapacitated and can no longer live in it? Estate planning enables you to designate a beneficiary to inherit your home if that’s what you want.
You can also specify instructions in a will if you want your house to be sold, and then you can add your wishes regarding what you would like to have happen to the proceeds. Many estate specialists say that the best thing to do if you would like someone to inherit your house is to place it in a trust.
If you die without a will, the state of Indiana will determine what happens
There’s no law or rules to obligate you to set up an estate plan just because you are a new homeowner. Remember, however, that if you die without having signed a trust or last will and testament, an Indiana probate court judge will determine what happens to your house.
Estate planning helps if you have multiple children
If you have more than one child, you may wish to discuss a unique plan for your home. If you are just married when you become a new homeowner but plan to have several children, you and your spouse can discuss options and then amend your estate plan, as needed, as each new child is born.
For instance, if you already have several children when you purchase a new home and execute an estate plan, you might state that one child will keep possession of the house by buying out his or her siblings. If your children are minors, you can place the house in a trust and appoint a trustee to manage it. One of the benefits of estate planning is that the process is highly customizable, and you can update your plan with additions, deletions or changes as needed.