The information in this column is not intended as legal advice but to provide a general understanding of the law. Any readers with a legal problem, including those whose questions are addressed here, should consult an attorney for advice on their particular circumstances.
Whether you’re a first-time buyer or making a change in lifestyle, purchasing a home is a major milestone. With that comes new responsibilities. In this week’s column I will address the steps you should take regarding those responsibilities.
Be sure to update your address with key agencies. After settling into your new home, one of your first tasks should be updating your mailing address with the necessary agencies. Start by notifying the U.S. Postal Service, this can be done in person or conveniently online, to make sure your mail is forwarded without interruption.
It’s also essential to inform your tax professional so that they can notify the IRS by submitting Form 8822. This helps prevent any delays in receiving tax documents, refunds, or other important communications tied to your legal and financial responsibilities.
Align your home title with your estate plan. Take a moment to review your deed and confirm how the property is titled. It’s important that this aligns with your estate planning strategy to ensure your goals are carried out smoothly.
If your estate plan included instructions related to a former property, be sure to update those details now that you’ve moved.
Revisit your life insurance and beneficiaries. If you have taken out a mortgage to finance your new home, now is the time to review your life insurance coverage. It is essential to ensure your policy is sufficient to cover the mortgage balance in the event of your death, especially if you have a spouse or children who may continue living in the home. Even if they don’t remain in the home, the insurance payout can provide financial security during a difficult transition.
This is also a smart moment to revisit your beneficiary designations with your financial institutions. Major life events like purchasing a home can quickly make parts of your estate plan outdated. If your designations aren’t aligned with your overall estate planning documents, you risk unintentionally excluding a loved one or distributing assets in a way that doesn’t reflect your wishes.
Lastly, connect with your insurance provider to confirm you are receiving any available discounts. Many companies offer reduced rates for bundling homeowner’s and auto insurance, and owning a home may qualify you for savings not available to renters. Taking these steps ensures you’re financially protected, and making the most of your coverage.
Make your estate plan work with your new home. Buying a home changes your financial picture, and your estate plan should reflect that. Whether you are updating a Will, changing beneficiaries, or making sure your deed is properly titled, professional guidance makes a difference, so seek an attorney experienced in estate planning to assist you.
Sam A. Moak is an attorney with the Huntsville law firm of Moak & Moak, P.C. He is licensed to practice in all fields of law by the Supreme Court of Texas, is a Member of the State Bar College, and is a member of the Real Estate, Probate and Trust Law Section of the State Bar of Texas. www.moakandmoak.com