Buying a home is often one of the largest financial decisions a person or family will make. Between the purchase agreement, mortgage, insurance, and moving arrangements, estate planning may be the last thing on your mind. Yet a new home is an important reason to look at your estate plan and make sure your property is accounted for properly.

If you have a living trust, do not assume that purchasing a home automatically places it in the trust. The deed determines how the property is held, and the ownership documents should be reviewed to determine whether the home should be transferred into your trust. That process needs to be handled carefully, particularly when a mortgage, existing ownership arrangement, or potential tax consequences are involved.

This is especially worth considering in California, where real estate can represent a substantial portion of a family’s estate. If a home is not properly addressed in the estate plan, your family may face additional steps after your death to transfer ownership. A living trust can help avoid a full probate proceeding for property held in the trust, but the trust must be properly funded.

Selling a home deserves attention, too. You may need to review your plan after selling a property, buying another, or changing how you hold title. It is also a sensible time to confirm that your beneficiary designations and other estate planning documents remain consistent with your wishes.

A home purchase is a milestone worth enjoying. Taking a little time to review your estate plan can help ensure that the property is addressed according to your intentions and that your family has clear instructions for the future.

If you are buying a home and already have a living trust, this is a good time to review your plan before the paperwork gets put away and forgotten. We can review how the property will be owned, explain whether it should be transferred into your trust, and help you understand what needs to be addressed in your estate planning documents. Buying or selling a home does not always require a complete overhaul of your estate plan, but it is important to make sure the details are handled correctly. We help you identify what needs attention so your plan continues to reflect your wishes.

Frequently Asked Questions (FAQs): 

Should I put my new home in my living trust?

For many homeowners, holding real estate in a properly prepared living trust can help the property pass to beneficiaries without a full probate proceeding. The right arrangement depends on your circumstances, including how the property is owned and any mortgage or tax considerations.

If I already have a living trust, is my new home automatically included?

No. Buying a home does not automatically transfer it into an existing trust. The deed and related documents should be reviewed to determine whether a transfer is appropriate and to ensure the transaction is completed correctly.

Do I need to update my estate plan after selling my home?

It may be wise to review your plan, particularly if you purchase another property, receive substantial proceeds, or your financial circumstances have changed. We can help you determine whether updates to your trust or related documents may be appropriate.

What if my spouse and I buy a home together?

How you take title to the property can affect how it is handled during your lifetimes and after one or both spouses die. Reviewing the ownership arrangement alongside your estate plan can help ensure that the property is addressed according to your wishes.