The recent trend in the housing market has shown that supply is low, demand is high, and prices have reached a peak in a seller’s market. More young people have hit the market to buy their first home, which is a big step for many.
Taking that step, it is important to know what to do to protect this large asset and ensure its safe passage to future beneficiaries.
Misconceptions about estate plans
Forbes discusses creating estate plans after buying a home. While many younger homeowners mistakenly believe that estate planning should remain reserved for the wealthy or elderly, that is simply untrue. An estate plan is a way to ensure that major assets get passed to beneficiaries with as few troubles as possible.
Note that those who do not own homes and have less than $150,000 in assets will likely have no need for a trust. However, buying a home changes the game, as having a house listed in a trust allows for one crucial thing: skipping probate.
Helping loved ones avoid probate
Though the probate process differs depending on the assets in question and the state laws, most cases will take a minimum of two years to get through on average. This is a huge time sink, and can also cost your beneficiaries financially while taxing their mental and physical well-being due to the stress that comes along with managing probate.
Skip the entire hassle of probate and ensure that beneficiaries have easy access to their assets with an estate plan. Those who already have a plan should also consider reviewing and updating it after the purchase of any new property for the same reasons.