Though the seller’s market has died down recently due to inflation and the economic turmoil currently faced by many, a number of people are still setting out to make their first home purchases.
Thus, it is crucial for this new wave of home-owners to know how to keep this enormous asset protected, and how to pass it down.
Who needs an estate plan or trust?
Forbes specifically speaks to homebuyers who have not set up their estate plan yet. First, they dispel some of the misunderstandings associated with estate plans. Specifically, many people believe that they are only necessary for the elderly or people with a lot of wealth.
However, anyone with any significant assets – such as a home – should have an estate plan. It is the best way to ensure assets get passed on to beneficiaries without any legal snags.
Note, people with fewer than $150,000 in assets and who do not own homes do not have much need for a trust. However, after buying a home, having it in a trust is crucial as it allows the homeowner’s beneficiaries to skip the probate process.
Why do you want to avoid probate?
Why is this so beneficial? Probate is a lengthy and often stressful process, with the average minimum time it takes being two entire years. Not only is this mentally taxing, but it also means that a homeowner’s loved ones will be without their assets – i.e., the home – for the length of the probate process.
Thus, even if a person does not have many or any large assets outside of the home, this alone should go into a trust.