Buying a home in Texas is a significant investment. Your home is likely the biggest asset you will own, and it’s where you plan to raise your family. During this time, it’s imperative to plan for the unexpected so that your family will get to keep the home. Having a good estate plan not only ensures protection for your family, but it also prevents conflict among your family members in the event of sudden death. Read today’s blog to learn more about estate planning after you buy a home.
What Is a Mortgage?
A mortgage is a loan from a lender to help you finance the purchase of your home. Taking out a mortgage means that you promise to repay what you borrow, plus an interest rate. As a homebuyer, you have many options for choosing a mortgage. In general, though, you will commit to living in your home and making payments on it for many years.
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Have Sufficient Life Insurance Coverage
When you purchase a new home, take out an insurance policy that can pay off the mortgage if you or your spouse should pass unexpectedly. Remember to account for taxes and any other costs that could cause problems for your family. Additionally, make sure your life insurance policy provides enough money for your family to pay other debts. You don’t want your family to have to sell the house to cover expenses such as school tuition, funeral costs, vehicles, and medical bills.
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Distribute Assets Equally Among Children
The most reasonable way to handle your house after death is to make sure all of your children have an equal share in the estate. However, this task can get complicated with multiple children, so it helps to consult an estate planning attorney. If one child wants the house, you could give it to them and leave assets of equal value to your other children. You can use your revocable living trust to specify your wishes — just mention that one child’s portion must include your home. By distributing your assets equally among your children, you reduce the possibility of complications after your passing.
Estate Planning at the Davidson Law Group
Our experienced estate planners will work with you to create an effective strategy for distributing your new home among your children. Plus, we’ll make sure that your family has the resources to keep your home should something happen to you. If you have any questions about estate planning, call the Davidson Law Group in Fort Worth, Allen, or Tyler. You can also schedule a free consultation on our website.