An estate plan allows you to manage and organize your assets throughout your life and prepare for what happens to your assets when you can no longer govern them. Therefore, it is crucial to regularly update your estate plan when there are substantial changes in your life. Buying a house, especially your first home, is one of the most significant decisions you will make in your lifetime. While you are preoccupied with home improvements, consider making improvements to your estate plan as well.
Your home is a sizable asset
Buying a home is a major life milestone that not everyone has the luxury of achieving. It increases your net worth substantially. In fact, your first home could be your biggest financial asset today. It is only logical to include it in your estate plan.
You might have mortgage debt
Your estate includes your debts and liabilities. If your spouse is a co-signor to your home, they must keep up with mortgage payments. Your estate plan can also reflect how mortgage payments will continue with the funds from your estate. If something happens to you and your family cannot continue paying the mortgage, your home will be at risk of foreclosure.
Protecting your loved ones in the event of an untimely death
By immediately including your home in your estate plan, you can ensure that your spouse, children or family will maintain ownership no matter what happens to you. They can still live in the residence and have the right to sell or lease it. If your home is solely under your name and you did not assign any beneficiaries, the courts in Oklahoma may consider it probate property. The probate process can be long and costly. Including your home in your estate plan will help your beneficiaries and/or surviving spouse avoid going through probate court.
We will never know what life has in store for us. You worked hard to buy your first home for yourself and your family. Your estate plan can help safeguard your wishes and the interests of the loved ones you leave behind.