Smart Estate Planning for Homeowners

One of the joys of being a real estate broker is helping families find their dream homes.

A lot happens between that first walkthrough to the final closing day. There are ups and downs throughout the whole home buying process. But once those keys are in your hand, your work isn’t over.

The next important step is to protect your investment. You want your loved ones are taken care of in the event of your death. That means smart estate planning for homeowners.

What Does an Estate Planner Do?

An estate attorney is a specialist in estate law who helps homeowners prepare for their affairs to be handled following their passing.

Homeowners who get their affairs in order (as the old saying goes) can have the peace of mind that there is a plan in place that protects beneficiaries following their passing.

As NerdWallet says, “The attorney should look carefully at your unique family and financial situation, explain the estate planning process and help you make the best choices for you and your descendants and beneficiaries.”

What To Look For In an Estate Planner

“Be careful of any blanket statements like ‘everyone needs a trust,’” says Taylor Kittell of Breakwater Law. “Without a clear cost-benefit analysis, there’s no reason to spend time or money on attorney fees to set one up.”

When researching estate planners, check their specialization. Some attorneys list wills and trusts but focus on other areas like criminal law.

These attorneys may not truly specialize in estate planning or administration, which could impact the quality of their work.

Taylor emphasizes the importance of knowing if your estate planner is also an estate administrator.

Estate planners help while you are alive, but administrators handle the execution after your incapacity or death.

“Planners who face the results of their work are more effective during the planning process,” Taylor says.

As a homeowner, ensure your estate plan considers factors like your county, mortgage terms, and family’s specific needs.

What To Expect When Meeting with An Estate Attorney

Before meeting with an estate planner, you’ll likely receive a questionnaire about your assets and wishes for handling them after your death. This document is just a starting point for deeper discussions during your in-person meeting.

The meeting allows you and your attorney to clarify details and assess your needs. With the complexity of legal jargon, having an expert guide you ensures the documents are accurate and complete.

After the meeting, finalizing everything may take a few weeks to a few months, depending on your situation’s complexity.

How Much Does an Estate Attorney Cost?

Like everything else, it varies. Some estate planning attorneys charge by the hour, and others charge a flat rate. In either case, be sure to ask up front what the charges will include and if there are any other fees you could expect along the way.

As reported in Forbes, what you should expect to pay will vary depending on what services you’re seeking. A simple will preparation could cost as little as $100, whereas a more complex one could cost many thousands. If you need a power of attorney or advance directives set up, that will tend to cost quite a bit more as well.

But in the end, the peace of mind knowing your loved ones won’t have a sea of paperwork to sort through following your passing is worth it.

Homeownership and Estate Planning

When buying or selling a home with a trust, have all trust paperwork ready for your real estate agent. This proves you’re authorized to represent the estate during property transfers.

If you buy or sell property, notify your estate attorney right away to update your paperwork.

Review your estate details every few years to keep them current. Be sure to document any beneficiary name or contact changes as well.

Other Estate Planning Considerations for Homeowners

We asked Taylor what are some often-overlooked aspects of estate planning that homeowners should be aware of. She says, “Many homeowners overlook the need for cash to cover expenses like utilities, repairs, or other costs before a property can be sold during incapacity or after death.”

As is common in real estate transactions that don’t include an estate, there is often a back-and-forth negotiation period where buyers will request a certain amount of repairs to a home before agreeing to a final sale.

Therefore, having a certain amount of cash as part of an estate will help your loved ones pay for the needs of a home until it can be sold or otherwise distributed.