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You’ve unpacked the boxes, painted the walls, and maybe even planted flowers out front. But here’s something most people forget to do after buying a home: update their estate plan. What would happen to your new home if something unexpected occurred tomorrow?
Buying a house is a big step—both emotionally and financially. That’s why it’s so important to protect it. In Minnesota, state laws about property ownership and probate can affect how your home is passed down. In this post, we’ll explain what that means for you and how a few smart updates can keep your new investment safe.
Why Your Estate Plan Should Reflect Your New Property
Anytime you take on a significant asset, it’s worth reviewing your estate plan. Your home may now be the most significant part of your estate, and how it’s titled, and whether it’s addressed in your will or trust, can determine whether your loved ones go through probate, deal with tax issues, or face confusion during an already stressful time.
Minnesota’s probate laws don’t automatically transfer property the way many people assume. If your home isn’t properly accounted for, it could pass to the wrong person or get stuck in court for months. This can be especially painful for loved ones who rely on the home or hope to keep it in the family. Updating your estate plan now can avoid those problems later.
Minnesota Property Rules and Homestead Protections
Under Minnesota law, your home may qualify as a “homestead,” which gives it special treatment in estate matters. A homestead is typically your primary residence, and it comes with some key protections:
- Surviving spouse and minor children have the right to live in the homestead, even if the home is not left to them in a will.
- Creditor protection may apply, keeping certain creditors from forcing the sale of a homestead after your death.
But these protections aren’t automatic in every case. For example, if your home isn’t titled correctly, the outcome can get complicated.
Tools to Protect Your New Home
Several estate planning tools can help you control what happens to your home and avoid probate headaches.
Transfer on Death Deed (TODD)
This document allows you to name a beneficiary who will automatically receive the home after your death. You keep complete control of the property while you’re alive, and the deed can be changed or revoked at any time. A TODD is a simple way to transfer real estate without probate.
Revocable Living Trust
Placing your home in a revocable trust keeps it out of probate and gives you more control over how and when your property is passed on. This is especially helpful if you own multiple properties, have blended family concerns, or want to include instructions for managing the home if you become incapacitated.
Joint Tenancy with Right of Survivorship
If you own the home with someone else, like a spouse or partner, you might hold the title jointly. That means when one owner passes away, the other automatically owns the entire home.
Homestead Declaration
In some cases, recording a homestead declaration can add an extra layer of protection under Minnesota law. It’s worth discussing whether this step makes sense for your situation.
Don’t Forget These Related Updates
Once your home is added to your estate plan, take time to review other related documents and accounts:
- Make sure your will or trust includes clear directions about the home.
- Update powers of attorney to ensure someone can manage or sell the home if you’re unable to.
- Double-check homeowner’s insurance and any mortgage-related beneficiary designations.
- If you bought the home jointly, talk about what each person wants to happen if one of you passes away.
These small updates can make a big difference in how your loved ones experience the transition later.
Buying a Home Is Just the Beginning
Purchasing a home is a significant milestone, but protecting it is just as important. By updating your estate plan now, you give your loved ones peace of mind and ensure your wishes are honored. At Unique Estate Law, we’ll help you figure out which tools make sense for your new situation and guide you every step of the way. Contact us today and let’s protect your home the way you intended.