Spring is associated with renewal. And as the weather gets warmer, many homeowners turn their attention to renovation projects. Each May, the home remodeling industry, and the National Association of Home Builders (NAHB) celebrate National Home Remodeling Month. In 2023, homeowners will take on over 17 million home remodeling projects.
Remodeling & Estate Plans
Between planning, permitting, and construction, the home remodeling process can take months to complete. But even after the finishing touches have been applied, you may still have work to do. If the home is part of an estate plan, a remodel can affect that plan and require changes to it. To keep your estate plan up to date, make sure to discuss a home remodeling project with an attorney.
Home Improvement Estate Planning Considerations
Different generations spend differently on home renovations. Millennials, for example, tend to focus on projects around family formation and favor a do-it-yourself approach. Baby Boomers and the Silent Generation, on the other hand, prioritize projects that make the home more livable as they age and are more likely to hire a professional contractor.
Remodeling a Home in a Trust with a Home Equity Loan
Homeowners may place their property in a revocable living trust (i.e., a living trust) to avoid probate. Placing property in a trust makes the trust the legal owner of the property, which requires drafting a new deed in the trust’s name.
Increasing a Home’s Value and Beneficiaries
Home value changes may affect a homeowner’s estate plan. If leaving the property to a specific person and wanting to treat beneficiaries equally, an estate plan may need to be refigured to equalize each beneficiary’s inheritance. One option to do this is to leave the home to more than one person; however, care must be taken to avoid conflict among multiple beneficiaries. The estate plan should stipulate how the home will be co-owned and provide a plan for the recipients to sell their interests in it.
Balancing Homeowner Needs and Legacy
Older adults have a strong preference for growing old in their current homes. Ninety percent of respondents told AARP that they want to “age in place.” At the same time, nearly 50 percent said they have not considered the changes their home may need to accommodate them as they age.
Remodeling Your Estate Plan After Home Improvement
Americans renovate their homes around every three to five years. This is the same time interval that attorneys recommend reviewing an estate plan. Once you have finished remodeling your home, you should consider remodeling your estate plan. In addition to home improvements, there may have been other life events in recent years that warrant an estate plan update. Making changes to your plan does not cost much, and you will buy peace of mind knowing your plan reflects your current wishes.
About Skvarna Law Firm in Glendora and Upland, California
Let a skilled attorney assist with your estate plan. So, contact us today to learn about your options (909) 608-7671. We operate offices in Glendora and Upland, California. Therefore, we provide legal services for individuals living in San Bernardino, Los Angeles, Orange, and Riverside Counties. This includes the cities of Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Montclair, Pomona, La Verne, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
