Now that you purchased your home, here are two adulting tips you should consider…
Will & Trust
I’ve transacted many real estate trust sales in the past few years. Due to these experiences, I quickly realized how important estate planning is. For most homeowners, basic estate planning will consist of having a will and a trust.
In summary, a will is a document that states your final wishes. In addition, can be defined as, “a fiduciary relationship in which one party, known as the trustor, gives another party, the trustee, the right to hold title to property or assets for the befits of a third party, the beneficiary.”
Not many people like to talk about death since it’s a difficult conversation to have. However, creating a will and a trust will give you peace of mind that your estate will be properly managed.
Life Insurance
Sorry to sound morbid again…For most people, owning a home will be their largest investment. Purchasing a life insurance policy can ensure your home (and other assets) are protected if you die.
For example, let’s say you and your spouse bought a $400,000 condo. You put down 10% and your mortgage amount is $360,000. Ideally speaking, you would probably want to get a life insurance policy that covers the balance of mortgage. If you were to die, your spouse now has enough money to pay off the mortgage.
-Roda