One of the joys of being a real estate broker is helping families find their dream homes.
And while a lot happens between that first walkthrough where you feel in your gut, “this is the one!” 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–likely one of the largest you’ll make in your lifetime–so that your loved ones are taken care of in the event of your death. That means estate planning.
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.
By “getting your affairs in order,” as the old saying goes, homeowners 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 specific to your situation, there’s no reason to spend the time or money on the attorney fees to set one up.”
Other things to look for when researching estate planners is the area of specialization they work in. While some attorneys have “wills and trust preparation” on their list of things they can do, they may spend more of their time on criminal defense or family law and aren’t truly specialists in estate planning or administration.
Taylor says it’s also important to note whether your estate planner is also an estate administrator.
Whereas an estate planner works with you while you are alive, the administrator will handle the details and rollout of your estate plan upon your incapacity or death.
“A planner who faces the results of their own work is more effective and pragmatic during the planning process,” says Taylor.
As a homeowner, you want your estate plan to consider the factors of your situation, such as the county you live in, the mortgage terms on your property, and the individual needs of your family and beneficiaries.
What To Expect When Meeting with An Estate Attorney
Before meeting with an estate planner, they’ll likely send you a long questionnaire that asks about your assets and how you want them handled in the event of your death. Keep in mind that your responses to this initial information-gathering document can simply be a starting point for a more in-depth conversation. You can go into further detail when you meet with your estate planner in person.
The in-person meeting with your estate planner will give both you and your attorney a chance to ask clarifying questions in order to assess your overall needs. With all the legal jargon involved in these kinds of situations, it’s immensely helpful to have someone on your side helping you through the process. Your estate planner makes sure everything is worded correctly in the final documents and ensures all the right boxes are checked.
Following your meeting, it could take anywhere from a few weeks up to a few months to get everything finalized and in order, depending on how complex your situation is.
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 in place, you’ll need to ensure all your trust paperwork is handy for your real estate agent. This will provide documentation proof that you are a representative of the estate when it comes time to transfer ownership of a property to a new buyer.
As soon as any changes happen with your estate–for example, buying or selling any properties–you’ll need to contact your estate attorney to update your paperwork to reflect the change.
It’s a good idea to review your estate details every few years, depending on your situation. Any name changes or contact information changes for your beneficiaries also needs to be documented to keep your paperwork up-to-date.
Other Estate Planning Considerations
We asked Taylor what are some often-overlooked aspects of estate planning that homeowners should be aware of. She says, “Most homeowners overlook the need for cash to be available during incapacity or after death before a property can be sold, and underestimate cash that needs to be available to handle things like utilities or repairs before a property can be sold.”
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.
Estate Planning & Homeownership: Recap
Regardless of your situation–married or single, children or not, have multiple properties or a single home–it’s a good idea to at least speak with an estate planner to see if estate planning is a smart choice.
