Buying a new home is an exciting milestone. Whether you’re upsizing, downsizing, or relocating for a fresh start, there’s a lot to think about—packing, moving logistics, and settling in. But one important step that you, as a homeowner, should not forget is to update your estate plan, especially your trust.
Why should you update your estate plan when you move into a new home? If you’ve created a living trust to avoid probate and protect your loved ones, you need to be sure your new home is properly included in it.
As an estate planning lawyer in Rochester Hills, Michigan, I can’t stress enough the importance of taking this one step. Failing to do so can mean that your property will still go through probate court, defeating one of the main purposes of having a trust in the first place.
In this blog post, I’ll share the key reasons you want to update your living trust as soon as you move into your new home.
5 Key Reasons To Update Your Estate Plan After Moving Into A Home
Here are a few reasons why updating your trust should be at the top of your moving checklist:
1. Funding Your Trust with Your New Property
When you buy a new home, the deed is typically prepared in your name as an individual (or jointly, if you’re buying with a spouse). But unless you take the extra step of transferring ownership into your trust, the house won’t automatically be covered by it.
This process is called “funding” your trust, and it usually requires signing and recording a new deed that names your trust as the owner. If you don’t do this, your home could end up in probate, causing delays and expenses for your heirs.
2. Updating Property Schedules and Exhibits
Many trusts have a schedule or exhibit listing the real estate and other assets included. After moving, you should update this list to remove your old property and add your new address. This helps avoid confusion later and makes clear what assets are subject to your trust’s provisions.
3. Reviewing Other Related Documents
When you move, it’s also a good time to review your entire estate plan to ensure everything still meets your needs. You may want to update:
- Your pour-over will (to catch any assets not titled in your trust)
- Powers of attorney
- Beneficiary designations
If you’ve moved to another state, it’s even more important to review your documents because laws governing trusts and wills can vary significantly.
4. Protecting Your Loved Ones from Probate
One of the main benefits of a living trust is avoiding probate—a court-supervised process that can be time-consuming and costly. But to get this benefit, your trust must actually own your assets. If your new home isn’t titled in the trust, it will likely have to go through probate before it can be distributed to your beneficiaries.
5. Maintaining Privacy
Unlike wills, trusts are private documents that don’t become public record upon your passing. Ensuring your new property is held in your trust helps keep your affairs confidential and reduces the chance of disputes.
Update Your Estate Plan And Trust With Help From Stephanie Krane-Boehmer Law
Moving to a new home is the perfect opportunity to give your estate plan a checkup. By updating your trust and related documents, you can protect your investment, simplify matters for your loved ones, and ensure that your wishes are carried out exactly as you intended.
If you’ve recently purchased a home or are planning a move, I’d be happy to help you review your trust and make any needed updates
Feel free to contact my office to schedule a consultation. Our office is located in Rochester Hills, and we serve Oakland, Macomb, Genesee, Lapeer, Livingston, and Wayne Counties.