Today, we’ll look at a reliable estate planning checklist. For many families, a home is one of the largest assets included in an estate. Yet deciding who should inherit the property is only part of the planning process. Homeowners also need to consider how title is held, what happens to an outstanding mortgage, who can manage the property during incapacity, and whether other financial accounts support the same plan.
A Homeowner’s Estate Planning Checklist
If you complete the items in this estate planning checklist, you’ll have peace of mind about whatever the future might hold.
Review How the Property Is Titled
Start with the deed. Confirm exactly who owns the property and how ownership is recorded. This becomes especially important for married couples, unmarried co-owners, and homeowners who acquired property before marriage.
Ownership structure can affect what happens after an owner dies. Depending on state law and how title is held, a co-owner’s interest might pass automatically to another owner or become part of the deceased person’s estate.
Some states also permit transfer-on-death deeds or similar arrangements. These can allow real estate to pass directly to a named beneficiary while the current owner retains control during life. Rules vary considerably by state, so homeowners should discuss deed changes with an estate planning attorney before recording anything.
Account for the Mortgage
Leaving someone a house does not necessarily mean leaving them a debt-free property. Record the current mortgage balance, servicer information, monthly payment, and details about any home equity loans or lines of credit.
An heir who receives a mortgaged home may need to provide the mortgage servicer with documentation establishing the right to the property. Depending on the circumstances, that could include an executed will, death certificate, or documentation from the estate’s executor.
Homeowners should keep mortgage information somewhere their executor or other trusted person can locate it. This helps reduce the risk of payments being overlooked during estate administration.
Related: 7 Security Tips for Protecting Collectibles at Home
Coordinate the Home With the Rest of the Estate
A will is an important document, but homeowners should look at their assets collectively. Retirement accounts, life insurance, certain bank accounts, and other assets may transfer according to beneficiary designations rather than instructions in a will.
Review primary and contingent beneficiaries and confirm that these choices still reflect current wishes. Marriage, divorce, births, deaths, and other family changes are good reasons to revisit them.
Homeowners using professional financial advisor services may also want to review how liquid assets fit with plans for the property. For example, leaving a house to one child may create practical issues if other children are supposed to receive comparable portions of the estate.
Plan for Incapacity, Too
Estate planning should address what happens if a homeowner becomes unable to manage personal or financial matters. A durable financial power of attorney can authorize a selected person to handle certain financial responsibilities. Depending on the document and applicable law, those responsibilities could include paying the mortgage, managing household bills, dealing with insurance, or handling property-related transactions.
Create a Complete Property File
Important records should be organized somewhere accessible to the appropriate trusted person. Include the deed, mortgage information, homeowners insurance policy, property tax records, association information, and documents related to major improvements.
The American Bar Association recommends gathering information about real estate, debts, jointly owned property, existing estate documents, financial assets, and other property when preparing an estate plan.
Consider adding practical information that may otherwise be difficult for family members to locate, such as utility providers, security system details, and contact information for the property manager if applicable.
Homeowners should periodically confirm that the deed, estate documents, beneficiary designations, and financial records still work together. A house carries legal ownership, debt, taxes, insurance, and ongoing expenses, so transferring it successfully requires more than naming an heir. Look over the infographic below for more information.
