Whether you’re a first-time homeowner or you’ve been through the process before, owning a home is a significant milestone that requires careful planning to ensure you’re well-prepared for the future. Below are three key things to consider for safeguarding your home and your loved ones.
1. Update Your Address
If you’ve recently moved, it’s crucial to update your address with the right organizations. You can do this at your local United States Postal Office by filling out a form. Alternatively, if you can’t visit in person, you can update your address on their website, which will help ensure your mail is forwarded correctly.
To avoid missing important tax documents or refunds, be sure to update your address with the IRS using Form 8822 as well as with the California Franchise Tax Board. This will help ensure that you continue to receive any important notices regarding your taxes.
2. Align Your Home’s Title with Your Estate Plan
Take a look at the deed for your home to determine how it’s titled. Ideally, you would have consulted an estate planning professional before purchasing to decide how to hold the property—whether in your individual name, jointly with a spouse, or in the name of a trust. Reviewing your estate plan is essential to ensure it still aligns with your goals.
For example, if your plan includes specific instructions for a previous home, you may need to update those provisions to avoid confusion in the future. If your estate plan includes a trust to avoid probate, make sure your home is titled in the name of the trust rather than your personal name. Additionally, if you intend for your home to be held for specific loved ones, such as minor children, ensure the appropriate provisions are in place.
3. Review Life Insurance Coverage and Beneficiary Designations
If you didn’t pay cash for your home, you likely have a monthly mortgage. It’s wise to prepare for the possibility of passing away before the mortgage is paid off. Consider whether you have sufficient life insurance to cover the remaining balance. This can help ensure that your surviving spouse or children, who may continue living in the home, have the financial means to handle this significant monthly expense. Life insurance can be a valuable resource during an emotionally—and sometimes financially—challenging time.
It’s also a great opportunity to review your beneficiary designations. Life changes quickly, and updating beneficiary information can be easily overlooked. If your designations don’t match your estate plan, you could unintentionally disinherit a family member, leave a substantial amount of money to a young adult or minor without guidance, or benefit someone you no longer wish to.
Lastly, reach out to your insurance agent to check for any available discounts. Many insurance companies offer discounts for bundling services, such as combining auto and homeowner’s insurance with the same carrier. Homeowners also often qualify for discounts that renters do not.
We Are Here to Help
Owning a home in California is a significant responsibility, and we are here to help you protect your loved ones and your investment. Contact us so we can ensure your homeownership and estate plan are aligned to help you achieve your goals.
Contact Information:
Kaminski Law Group APC
Phone: (916) 540-7618
Email: hello@californiatrusts.
Website: www.californiatrusts.
