Why every new homeowner needs a will

Buying a home is a major life milestone, and it’s often the first significant asset you’ll own. While most new homeowners focus on mortgages and maintenance, one crucial thing that’s frequently overlooked is creating a will.

Every new homeowner needs a will to ensure their property is passed on according to their wishes. Without a will, your home could be distributed by the courts based on intestacy laws, which may not reflect your intentions.

In this article, we’ll explore the key reasons every new homeowner needs a will, what happens if you don’t have one, how to keep your will updated, and the different types of wills you should consider.

Why every new homeowner needs a will

After buying a home, creating a will should be a priority. Here are the most important reasons why every new homeowner needs a will:

1. Securing your family’s financial future

A home is often the largest financial asset a person owns.

If you pass away without a will, there’s no guarantee your home will be distributed according to your wishes. A will allows you to explicitly choose who will inherit your property, protecting your family’s financial future.

Without a will, your home may go to unintended relatives or end up in the wrong hands. Ensuring your loved ones are financially secure is one of the primary benefits of having a will. It can also help pay off debts with life insurance payouts, such as mortgage balances, easing the financial burden on your beneficiaries.

2. Appointing guardians for your children

If you have children, it’s essential to name a guardian for your children in your will.

This ensures that if something happens to both parents, your children will be cared for by someone you trust. Without this provision, the court may appoint a guardian, which might not align with your wishes.

Additionally, by naming a guardian, you can help ensure that your children remain in the family home, providing stability during a difficult time.

3. Avoiding family disputes and probate conflicts

Without a clear will in place, disputes among family members can arise.

When it comes to property, these conflicts can be particularly challenging, especially if multiple relatives feel they have a claim to your home. A well-written will clarifies who should inherit your home, significantly reducing the chance of family conflicts and legal battles.

These kinds of disagreements often lead to delays during the probate process, which can prevent your loved ones from accessing their inheritance quickly. Taking the time to prepare a will reduces the risk of probate conflicts.

4. Specifying property beneficiaries

A will allows you to explicitly name the person or people who will inherit your home.

This is especially important if you’re in an unmarried partnership or have stepchildren, as these individuals may not automatically inherit under intestacy laws.

Intestacy means that the court, not you, will decide how your assets, including your home, are distributed. This can lead to unintended outcomes, especially if you have an unmarried partner or stepchildren, as they might not automatically inherit your property.

Creating a homeowner will ensures that your home goes to the beneficiaries you choose, whether it’s a spouse, partner, children, or close friends.

Keeping your will updated

Creating a will is just the first step. It’s equally important to update your will regularly, particularly after major life changes like buying a new home.

Keeping your will up to date ensures that your estate reflects your current financial situation, and that all of your assets, including any newly purchased property, are accounted for.

For homeowners, this is especially important when buying or selling a house. If you acquire a new home, your homeowner will should be revised to include this new asset, ensuring that it’s passed on to the right beneficiaries. Similarly, if your family situation changes, such as through marriage, divorce, or having children, your will should reflect these changes to avoid complications later.

It’s also important to securely store your will. Whether you keep it with a solicitor, in a home safe, or with a will storage service, make sure your homeowner will is in a place that your executor can access when needed. An inaccessible will could lead to delays and confusion during probate.

Types of wills

There are several types of wills to consider, each with its own advantages depending on your situation as a homeowner:

Traditional wills

The most common type of will, a traditional will, outlines how your assets—including your home—should be distributed after your death.

This is the best option for most homeowners, as it allows you to clearly specify who will inherit your property and other valuables.

Living wills and traditional wills

While a traditional will focuses on asset distribution, a living will outlines your preferences for medical care if you’re unable to make decisions yourself.

For homeowners, having both a traditional will and a living will is ideal, as it covers all aspects of your estate planning and healthcare decisions.

Joint wills

Some couples choose to create joint wills, where both partners agree to leave everything to the other. While this might seem straightforward, joint wills can complicate matters if one partner wants to change the will after the other has passed.

For homeowners, it’s often better to have individual wills that account for changing circumstances.

Final thoughts

As a new homeowner, creating a will is a vital step to protect your property and ensure your family’s financial future.

Every new homeowner needs a will to safeguard their home and assets, reduce the risk of family disputes, and simplify the probate process.

By keeping your will updated and choosing the right type of will for your situation, you can rest assured that your estate will be handled according to your wishes.