An overlooked asset in estate planning: the equity in your home
Why a comprehensive estate plan should consider not only what you leave behind, but also how you fund the life you want to live
By George A. Downey
When most people hear the term estate planning, they think of wills, trusts, beneficiary designations, and strategies for transferring assets to heirs. Those remain essential components of any sound estate plan. Yet many families overlook one of their most significant assets when evaluating their long-term financial and legacy goals: the equity in their home.
For many older Americans, their home represents not only years of memories and stability but also a substantial portion of their net worth. Despite this, home equity is frequently viewed solely as an asset to pass on to the next generation rather than a resource that can help support financial security, retirement objectives, and family priorities during one’s lifetime.
As life expectancy continues to increase, and retirement often spans decades, traditional estate-planning assumptions deserve a fresh look.
Home equity may provide opportunities to help meet both near-term and long-term objectives. Depending on circumstances, housing wealth may be used to supplement retirement income, fund home improvements that support aging in place, cover unexpected expenses, preserve investment assets during market downturns, or assist family members.
A truly comprehensive estate plan should therefore examine all major assets, not just investment accounts and insurance policies. Because a home is often the largest asset on a family balance sheet, excluding it from planning discussions may mean overlooking valuable opportunities.
The best approach is informed collaboration. Homeowners should consider consulting both a qualified financial planner and a mortgage professional who specializes in home equity and retirement-lending solutions.
Estate planning has always been about preparing thoughtfully for the future. For many older homeowners, home equity may be more than a dormant asset. It may be an important planning tool that deserves a seat at the table alongside more traditional estate-planning strategies.
About the Author: George Downey, CRMP (NMLS ID 10239) is a Senior Vice President specializing in Home Equity Conversion at The Federal Savings Bank branch located at 100 Grandview Road, Suite 105, Braintree, MA 02184. Contact Mr. Downey at 781-843-5553 / Cell 617-594-3666 / gdowney@thefederalsavingsbank.com, www.thefederalsavingsbank.com/georgedowney
