Every homeowner should budget for home maintenance when planning their estate. By budgeting for this maintenance in your estate plan, you can ensure that your home is well-maintained and that any necessary repairs are taken care of promptly, even after you’re gone.
If you don’t have an estate plan in place, your loved ones will need to guess your wishes and may not be able to take care of your home the way you wanted. Today, we’ll discuss how to budget for home maintenance in your estate plan.
Be realistic about the costs of home maintenance and repairs.
Before creating a budget for home maintenance, you need to estimate the cost of repairs and updates. This includes everything from repairing a roof to repainting the exterior of your home. Be sure to include both recurring and one-time expenses and factor in inflation to ensure that your budget is accurate for the long term. Moreover, you need to be realistic about the costs that may be incurred.
You may need to budget for a new roof, furnace, or windows. For example, a small leak in the roof can turn into a big expense if it’s not fixed right away. Leaks can also damage walls, ceilings, and furniture.
It is a good idea to contact some general contractors and search for roofing companies in Phoenix or wherever you’re located to provide estimates to budget more accurately.
Allocate funds into your estate plan.
Once you know your home maintenance and repair needs, you can allocate funds accordingly in your estate plan. This might mean setting aside a certain amount of money each month to cover repairs and updates or creating a fund that will be used specifically for this purpose.
Start small if you’re setting aside money each month to cover your estate plan repairs. Try setting aside $50 or $100 per month. Over time, this amount will add up to a substantial fund for your loved ones to maintain the home.
If you’re ready to start a home repairs fund, use a specific account earmarked for this purpose. As a result, you can keep your funds organized and make it easier to track your progress. One of the easiest ways to set up a home repairs fund is to automate your savings. This means your bank will automatically transfer a set amount of money from your checking account to your savings account each month. This can help you avoid temptation and make it easier to save.
Review your budget regularly and make necessary adjustments.
You should review your budget regularly and make necessary adjustments to ensure you always have the necessary funds to keep your home in good condition in the event of your death. Your budget will need to be adjusted as your circumstances change. For example, if you lose your job, you’ll need to adjust your budget to reflect your lower income.
Likewise, if you have a particularly expensive month, you may need to adjust your budget to account for those extra expenses. The key is to be flexible and willing to make changes as needed. Making these changes will help give your loved ones the peace of mind that they can continue to live in the home you both shared.
Stay ahead of the game.
One of the best ways to budget for home maintenance in your estate plan is to stay ahead of the game. This means making repairs and updates as needed, rather than leaving them for your heirs to repair out of your home maintenance fund. By keeping up with home maintenance and repairs while you’re still in good health, you can ensure that the budget you created will last for years to come after your passing. This way, your heirs should have no trouble keeping up with the home’s maintenance.
Keep your home maintained for your heirs.
Budgeting for home maintenance is an important part of estate planning. By creating a plan and budget, you can ensure that your home is in good condition and that your loved ones have the funds necessary to maintain it.