Becoming a first-time homeowner, or moving to a new house is interesting, and nerve-racking at the same time. You have to take care of all the little details because your future and your family depend on you. We spend weeks and even months preparing for the move, and it is said that people can spend up to 5 years until they find the perfect new home for them. When we sign those documents, we want to make sure we’ve done everything right, and we want our children and grandchildren to be able to grow and be happy in the home. Estate planning definitely comes with a lot of common mistakes, but the great thing is, there are a lot of ways to avoid them.
In this 2024 guide, we are going to talk to you about the plans you need to have in case everything goes according to plan, and in case something bad happens. After reading this article, you will know more about real estate and you will be prepared for a lot of things that could go wrong. Know that every situation is different, so it is always better to consult with an agent or a financial advisor before you make the final move for your specific situation.
1. Not including a professional
The first thing we are going to talk about is purchasing a place without including a professional. We think that we can do everything on our own, and we can take care of the taxes and all the little things all on our own. If you’ve ever purchased something that’s on the more expensive side, you probably know that there are so many documents that need to be signed, and there are so many things that you may not consider.
Even though you have to pay the professional something, it is far better to include them in the process at the beginning, than to risk looking for the most expensive lawyers when it turns out that because you signed the wrong document, you may end up losing your house.
2. No plan for your elderly days
We all think that we will never grow old and that we will never have to deal with retirement homes or nursing. The reality is, it is something that awaits us all, and it is better to be prepared for that, and choose the place on your own terms, than to risk being left to the state, or spending money you don’t have when the time comes.
One of the biggest mistakes people make is that they don’t plan for long-term care or disabilities, and you have to be smart enough to not make this mistake. There are a lot of different types of mortgages that allow retired people to purchase the home of their dreams, and there are a lot of insurance policies that are made for the elderly. Think about this now, when you don’t have to rely on others to help you with your home.
3. Not planning for your children’s future
This is something that no one wants to think about, but the reality is, our time on this planet is limited, and when the time comes, we want to make sure that our children are safe and secure. We’ve spent decades making sure that we purchase the right property, and if we leave our children without a will, the state will make the big decisions.
Many people believe that after their demise, everything they own will be inherited by their children, but the reality is, if you have a living spouse, about two-thirds of your property will go to them. So, to make sure that everything goes according to your plan, you should think about leaving a will. According to OneWill, you don’t have to go from one place to another to get this done, and with the right application, you can finish everything online. Understand all your legal rights, and make all the choices on your own, without the state interfering.
4. Never revising things
The next thing we are going to talk about is revisions. When we decide to do something, no matter if it is an insurance plan, long-term care, or a will, we just sign the documents one and hope we will never have to use any of those plans. Well, the reality is, things change, and you cannot rely on a decision you’ve made a decade or more ago.
When choosing the right real estate for you, you usually buy the best insurance plan for that moment, but things change, and you cannot rely on the fact that those same things will be of help now. Experts suggest that you should revise all of your legal plans at least once per year. Even though this may take a few hours, it is better to spend a few hours per year making sure you’ve made the right decisions, than risking losing things if something happens.
5. Not having insurance trust
When we make a life-policy we try to choose the best of the best. We spend hundreds, and even thousands of dollars every year just to make sure we have enough money in case something bad happens. The statistic shows that more than two-thirds of the people never get to use their insurance, and more than half the population does not get to use their retirement money.
So, the best thing you can do for your spouse, children, and grandchildren is to create an insurance trust and to be able to transfer the insurance policies. The trust is used so that your children will not be taxed on the money you’ve saved and the beneficiaries will not have to spend up to a year waiting for the money they legally own.
No one wants to think about all the things that could go wrong, and we all hope that we will live to be 100 or older. However, having an estate plan does not mean that you are expecting something bad to happen, it just means that you are smart enough to secure your future and your children’s future. Nowadays, there are a lot of ways to do that, so make sure you consult with the right professional and consider all of your options before you make your move. Utilize the availability of online applications so you don’t have to wait in line, or spend hours driving from one place to another just to sign a document.
