Congratulations on your new home! Whether it’s your first purchase or a move to better suit your needs, owning a home is a major milestone. With this exciting life change comes important responsibilities to prepare for the future. Here are three essential steps to take now that you’ve got the keys.
1. Update Your Address
One of the first things to do is update your address with the right organizations. Start with the United States Postal Service to ensure your mail is forwarded properly. This can be done in person or online for convenience.
Don’t forget to notify the Internal Revenue Service using Form 8822 and your state’s tax agency. This helps ensure you receive critical tax documents and refunds without delay.
2. Align Your Home’s Title with Your Estate Plan
Review the title of your new property to ensure it reflects your estate planning goals. If you’ve already worked with an estate planning professional, confirm that the property is titled correctly—whether in your name, jointly with a spouse, or under a trust.
For example, if your estate plan includes a trust to avoid probate, your home should be titled in the trust’s name. Alternatively, in states that allow them, a transfer-on-death (TOD) or Lady Bird deed can name a beneficiary while maintaining your ownership during your lifetime. If this is your first home, take time to ensure your estate plan reflects your wishes for how the property will be distributed, whether directly to loved ones or held in trust for their benefit.
3. Review Life Insurance and Beneficiary Designations
A new mortgage often means new financial considerations. Assess your life insurance coverage to ensure there’s enough to pay off the mortgage in the event of your passing. This is especially important if you have a spouse or children who would continue living in the home, as it provides financial stability during a difficult time.
While you’re reviewing life insurance, take a moment to double-check your beneficiary designations. Ensure they align with your estate plan to avoid unintended consequences, such as leaving a large sum to a minor or someone you no longer wish to benefit.
Additionally, contact your insurance provider to maximize savings. Bundling your homeowner’s insurance with existing policies, like auto insurance, can often lower your premiums.
Protect Your Investment and Your Future
Purchasing a home is an exciting step, and we’re here to help ensure your investment is protected. Contact our office today to review your estate plan and make sure it works seamlessly with your new homeownership goals.
