Anything that is left in your estate when you pass will likely be subject to state probate laws. If you don’t have a trust or power of attorney documents, items held in your estate may not be managed properly if you become incapacitated. Ultimately, this could put you at risk of losing your home during your lifetime or having it go to an unintended recipient after you pass.
Communication is key
Another potential issue that might arise is that you give your beneficiaries something that they don’t want or don’t know how to manage. For instance, you may want the family home to be kept in the family long after you pass. However, your kids may want to sell the property and use the money for other purposes. Talking to your kids or other beneficiaries may ensure that this asset is put to good use after you’re gone.
Consistently review your estate plan
Your needs may change in the months, years or decades after you create your estate plan. You may change your mind about who should get the home or whether you even want to keep it in your estate. A change in financial circumstances may require you to sell the home or take out a second mortgage prior to your death. Ultimately, you may no longer have any equity in the house or otherwise make it difficult for beneficiaries to afford owning it.
Make documents easy to find
Ideally, you will tell someone the location of your will, trust or other estate planning documents. It’s also a good idea to make sure that someone knows where the deed to the house is as well as any other documents that might be needed to transfer ownership of the property.
Having a comprehensive estate plan may make it easier to carry out your last wishes in a timely manner. It may also make it easier to prevent family infighting or other issues that might result in litigation or other delays.