Making and signing a will is not a requirement when purchasing a home, but it is critical for ensuring that your loved ones receive the property they were supposed to after you pass on.
Besides, if you’re purchasing a house for the first time in your life, having a will can help you get the process done smoothly. However, you must consider some major facts when making a will to buy a house.
This particular article will discuss the top factors you must consider regarding this legal procedure.
So, let’s not waste any more time and jump on to the five top factors to consider when making a will to buy a house.
Why Do I Need A Will To Buy a House?
Having a will when buying a house is one of the most significant decisions you will ever make. It will relieve you from a lot of hassles.
However, you need a good and skilled attorney or law firm to help you prepare a will that will serve your purpose. Click here if you’re seriously looking for will-making services near Georgia to get all the required information.
If you are not fully convinced about the importance of a will, here are some of the reasons why you should create a will while purchasing a house:
- A will can add legitimacy to your purchase of assets.
- Having a will can ensure the perfect settlement of your assets and liabilities after your death.
- Your family and loved ones will receive their share in your assets as per your wishes. No one will be cheated or deprived of what they deserve.
- A will should ensure what share your partner (who lived with you in the purchased house) will get from that particular house.
- A will also distributes the burden of the estate tax fairly among the heirs after your death, including any further legal fees.
- Without a will, your asset will fall under intestate succession, meaning, the state law will decide who is to receive your property after your demise.
What If You Already Have a Will?
If you luckily have a will already, you need to take some factors into consideration regarding buying a house.
One of the primary recommendations here is to update your current address.
Failing to do so might make your will become invalid. And an invalid will can’t help your lawyer or your loved ones disburse the assets you leave behind.
There will arise a debatable scenario that may go on to the courts. That’s why it’s important that you provide your current address of the house you’ve purchased and are willing to include in the will.
However, if you’ve moved to a new house without providing the current address in the will, the following measures can be taken:
Including a Codicil
A codicil is like a legal addendum that supplements the additional information to the existing will. Additional information may include an updated address, a change in the name of the partner, etc.
However, you can add a codicil in order for modifying, rewriting, or removing previous conditions too. Do it with the advice of a legal solicitor, so no scope of mistake remains.
Writing a New Will
Since you can add multiple codicils to your existing will, it’s highly possible that you’ve done so as your life has progressed. But having a long series of codicils may reduce the value of your will.
That’s why your attorney might suggest you rewrite the complete will; remaking it from zero. This might sound overwhelming, but it will actually help you refurbish the document and make it more eligible in court.
5 Major Things to Consider When Making a Will While Buying a House
Making a will with the help of a lawyer is as important as making a smart property purchase through a realtor. Besides, it helps you in considering a few major aspects beforehand.
Thinking over these aspects will make your document stronger. We’ve compiled five such things that you’ll want to include in your will while purchasing a house.
Let’s find them out in the following:
Ensuring the Type of Ownership
A will can help you in deciding the type of ownership of a house you’ve purchased with a partner.
The joint ownership of an asset may lead to complications if you haven’t included specific instructions for post-death disbursement. The court may not be able to figure out what to do with your house and it may be exclusively handed over to your family members or relatives.
That’s why it’s important to hire a legal solicitor to establish your ownership of the asset and how your share will be distributed upon your death.
Estate Tax
The estate tax will apply to your property once you die and the successor of your house will have to pay the tax if the house is worth more than $12.06 million as of 2022.
People or entities that are fully or partially exempt from the estate tax are:
- Your spouse
- Your parents, siblings, children, etc. (partially)
- Charities like orphanages, trusts, etc. (partially)
What About the Conveyancing Process?
A will doesn’t directly affect the conveyance process when you’re purchasing a house. But there will be a question of how to settle the ownership of the property if you’re sharing the purchase and ownership with someone.
You have to be very clear in your will about the transfer of the house to the co-owner after your death. Being ambiguous may deprive your successors of their fair share of the house while handing it fully over to the other owner.
Conditions to Put in Your Last Will and Testament
You must consider putting these conditions in your will while buying a house:
- The share of the house that each recipient will inherit in detail, including the successor names, relations, etc.
- Mentioning the executor’s name (friends, family, solicitor, etc.) who will ensure that your wishes and instructions are appropriately carried out
- Mentioning any charities or organizations to whom you want to leave a share of your house or property
There are other points you may need to include in your will concerning cash, existing business, children, etc.
Leaving Your House to the Right Person
Deciding the true inheritors of your house and other property after death is as equally important as knowing about the best time to buy a house.
You can leave your house to your desired successor in your will; however, you have to consider the following things:
- If you’re a sole owner, the successor of the house can be anyone you wish.
- If you’re a joint tenant, the control of the house will inevitably go to the co-owners (spouse, partner, etc.) on your demise.
- If it’s tenants in common, you’ll have to have a common notion of who will receive what percentage of ownership in the house upon the death of the shareholders of the house.
Final Thoughts
Making a will to buy a house will ease a lot of legal hassles for you over the long run. Moreover, your loved ones and successors will have to go through the pains of settlements in court if you avoid doing so.
Our article has compiled five considerable factors when making such a will along with its importance. So, make sure you have one on time.
Also, don’t neglect to hire a legal solicitor’s help in preparing a will. Or else, you might end up making an ambiguous document, serving none at all properly.