5 Key Estate Planning Tips for Homeowners

Home Ownership

Owning a home is one of the biggest financial investments you’ll make in your lifetime. But what happens to your home if something unexpected occurs? Proper estate planning ensures your property is protected and passes smoothly to your loved ones. Here are five key estate planning tips every homeowner in California should know:

1. Avoid Probate with a Trust

Many homeowners assume that a will is enough to pass their home to their heirs. However, a will alone still requires probate, which can be time-consuming and costly. Placing your home in a revocable living trust ensures that it transfers to your chosen beneficiaries without court involvement.

2. Update Your Deed

The way your home is titled matters. An estate planning attorney can help you consider options like joint tenancy with right of survivorship or community property with right of survivorship (if applicable in your state) to ensure a seamless transfer to a surviving spouse. If your property is in a trust, make sure the title reflects that.

3. Plan for Incapacity

If you become unable to manage your affairs due to illness or injury, who will handle mortgage payments, property taxes, or even selling your home if needed? A durable power of attorney allows a trusted person to make financial decisions on your behalf, avoiding court-appointed guardianship.

4. Consider Tax Implications

Estate and capital gains taxes can impact your heirs. A properly structured estate plan can help minimize tax burdens, especially with strategies like the step-up in basis, which can reduce capital gains taxes when passing the home to beneficiaries.

5. Regularly Review Your Estate Plan

Life changes—marriage, divorce, new children, or buying/selling property—should prompt a review of your estate plan. Ensure your documents and beneficiary designations align with your current wishes and financial situation.

Let’s Work Together

Real estate professionals play a key role in guiding homeowners through important financial decisions. Partnering with an estate planning attorney can help make those decisions and plans effective in the future. I’d love to connect and provide resources.