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Buying a home is a major milestone. It gives you a place to live, a foundation for building a family, and a valuable asset for growing your wealth. It’s natural to want to savor the moment after closing and moving in—but once the deal is done, it’s also the right time to think about estate planning.
Owning a home is a big responsibility, and estate planning is how you make sure that responsibility is managed. It ensures your home, and everything tied to it, stays protected and goes to the people you choose, rather than being left to chance or the decisions of the courts.
Even with all the paperwork and money involved in buying a home, it’s surprisingly easy for it to get tangled up in legal or logistical issues without a true estate plan. And with recent laws, like the One Big Beautiful Bill Act, affecting tax exemptions and efficiencies, there’s no better time to make sure your estate is in order.
Estate planning—it’s not just for wealthy people
The words “estate planning” might conjure images of wealthy men in wood-paneled rooms deciding who gets the yacht and who gets the mansion. In reality, once you own a home, you too are responsible for a large and often valuable asset that needs to be accounted for if anything happens to you.
“There’s a misconception that planning is a matter only for the wealthy and older generations, and this flawed notion overlooks how critical it is for homeowners of any age, even those who are in the early stages of homeownership,” says Cliff Auerswald, president of All Reverse Mortgage.
Not wanting to think about your estate when you’re young and healthy is understandable. But if you were to become seriously injured or die unexpectedly before your wishes are documented, it could create unnecessary stress and complications for your family and loved ones. Without a plan, state laws and courts decide what happens to your assets—and those decisions may not reflect what you would have done.
An estate plan protects your home and honors your intentions, regardless of your stage of life. For those who are parents, it can ensure your family keeps the home if something happens to you. For homeowners without children, it makes sure your home goes to the people you choose, rather than being claimed by the state if they cannot locate your next of kin.
And while estate planning is critical for any homeowner, recent changes in federal laws make reviewing your plan more important than ever.
How new laws may impact your estate planning
The One Big Beautiful Bill Act of 2025 has raised the permanent gift tax exemption to $15 million per person, or $30 million for married couples. While most first-time homebuyers won’t immediately qualify, it’s important to plan ahead.
“Most first-time homebuyers will not have the estate value to qualify for this exemption, but a combination of inflation and rising property prices might mean that your estate will face unnecessary taxes in the future,” says Auerswald. “Furthermore, some states are known to have much lower exemption thresholds, and without sufficient planning, your estate may face significant tax implications.”
That’s true: Estate tax exemptions vary by state, and some are notably less than the federal exemption. Massachusetts’ limit is $2 million, and Oregon’s is capped at a mere $1 million.
Meanwhile, the temporary increase in the SALT deduction cap allows you to deduct more of your state and local taxes—up to $40,000 for joint filers—through 2030. If you place your property in a separate, non-grantor trust, it may get its own SALT deduction cap. These rules can be complex, but the takeaway is clear: Reviewing your estate plan now can help you take advantage of these changes, reduce taxes, and ensure your home and assets pass to the people you choose.
Even if these changes don’t directly affect your current situation, changes in the law are certainly possible in future sessions of Congress. That’s why now is a good time to make sure your estate plan reflects your goals. Updating documents, confirming beneficiaries, and reviewing trusts can help you avoid surprises down the road and give you confidence that your home and other assets are protected.
Easy ways to get started on estate planning
By tackling the basics early, you protect your home and other assets without having to make a huge, separate project out of it.
“At the time of closing, you should have all your essential documents and financial information in hand—a perfect opportunity to set up a basic estate plan,” says Evan Harlow, a real estate agent at Maui Elite Property. “That often means creating a simple will, updating your beneficiaries and selecting decision-makers via powers of attorney. An estate planning attorney or an experienced paralegal can help you complete these documents so that your newly acquired property is immediately protected.”
If it fits your needs, Harlow also recommends adding a revocable living trust to make transferring your home and other assets easier and more private. A trust can help your heirs avoid a lengthy probate process and keep your estate out of the public record.
Your plan is complete, for now, once your documents are signed, valid in your state, and your beneficiary lists are current. Tell the people you’ve named in key roles, and review your plan every few years or after major life changes.
“The goal is to keep your plan accurate and relevant, not just ‘done’ once,” says Auerswald.
How to get this done, and for how much
If you’re not sure where to start, you can work with a financial planner or use reputable online legal services to create basic estate planning documents. For more complex situations—like blended families or significant assets—professional guidance can help ensure everything is done correctly.
Costs vary depending on the complexity of your plan. According to Harlow, you might spend anywhere from $300 to $1,000 for a basic will package or between $1,500 and $3,500 for a living trust. On top of that, factor in notary fees, storage costs, and updates over time. While this might feel like a lot upfront, consider that probate without planning can eat up an additional 3%–7% of your estate—suddenly, these fees don’t look so bad.
Estate planning doesn’t have to be intimidating or scary. Start small, keep your documents up to date, and seek professional guidance when needed. The sooner you put a plan in place, the more confident you can feel that your home and your legacy are in the hands you know and trust. After all, owning a home is a milestone—and estate planning is how you ensure it continues to work for you and your loved ones for years to come.