Congratulations on the purchase of your new home! Whether this is your first home or you are upgrading or downsizing from your current home, the purchase of a home is a big event in your life.

When major life events occur, it is important that you have a plan in place to ensure that you are properly prepared for the future. Below are a few things to consider now that you finally have the keys to your new home:

1. Update Your Address

Now that you are in your new home, it is very important that you update your address with the appropriate entities. Your local United States Postal Office has a form you can fill out. If you cannot make it into the post office, you can also update this information on their website. This will assist them in forwarding your mail to you.

To ensure that you do not miss any important tax notices or refunds, you will also want to update your address information with the Internal Revenue Service using Form 8822, as well as with your local state tax agency.

2. Make Sure That Your House Title Coordinates with Your Estate Plan

While it is still fresh in your mind, take a look at your new deed to determine how your new home is titled. Ideally, you had a discussion with an estate planning attorney prior to purchasing the new property to determine how you would like to own your new property, whether in your name individually, jointly with a spouse, or in the name of your trust. It is important to review your existing estate plan after the purchase of the home to ensure that it aligns with your estate planning goals.

For example, if your estate plan had a specific instruction to gift your prior property to someone, and the instruction references the address of your prior home, you will want to ensure that you update this provision once you no longer own the previous property to avoid confusion later. For homeowners creating their first estate plan, particularly those using a trust to avoid probate, it’s essential to ensure your home is titled in the name of the trust, not in your individual name.

Alternatively, consider using a transfer-on-death (TOD) deed to add the trust as a beneficiary to the home if your state recognizes these tools. Additionally, if you want your property distributed to a specific individual or held in trust for beneficiaries like minor children, be sure to include the necessary provisions to reflect your wishes. Properly updating and managing your trust and estate plan will help avoid probate and ensure smooth asset distribution to your loved ones.

3. Check Your Life Insurance Coverage and Beneficiary Designations

When purchasing a new home, it’s important to consider how your mortgage will impact your estate plan and loved ones. Unless you paid cash, you likely have a monthly mortgage. To protect your family, especially in the event of an untimely death, ensure you have sufficient life insurance to cover the remaining mortgage balance. This is crucial if you have a surviving spouse or children who will continue living in the home, as life insurance can provide much-needed financial support during emotionally and financially challenging times. By having life insurance as part of your estate plan, you help your beneficiaries manage one of their largest ongoing expenses—housing costs.

Additionally, buying a new home presents a great opportunity to review and update your beneficiary designations. Failing to update these designations to match your estate plan can lead to unintended consequences, such as disinheriting family members, leaving large sums to minors or young adults without guidelines, or passing your assets to someone you no longer wish to benefit. Properly aligning your life insurance and estate planning will ensure your money and property are distributed according to your wishes and avoid probate complications.

Lastly, now that you have a home and homeowner’s insurance, call your insurance agent to make sure that you are getting any additional discounts to which you may be entitled. Many insurance companies will offer discounts when you bundle services. If you already have car insurance through a carrier and use the same company for your homeowner’s insurance, you may be entitled to a better rate than if you obtained the policies at separate carriers. In addition, homeowners often get discounts that renters do not.

We Are Here to Help

Buying a new home is a significant milestone, and we’re here to help you protect both your loved ones and your new investment. Contact us today to ensure your estate plan and your new property are aligned to meet your goals.

Whether it’s updating beneficiary designations, setting up a trust to avoid probate, or ensuring your home is properly titled, we can help you safeguard your assets and create a comprehensive plan for the future.