What Really Happens If You Die Without a Will in Ohio?
Many people assume that if they pass away without a will, everything will just “work itself out.” Unfortunately, that’s not how Ohio law works. Dying without a will—also known as…
When thinking about estate planning, most people focus on their homes, bank accounts, and retirement savings. But what about your car? Vehicles are significant assets, and handling them properly in your estate plan can save your loved ones time, money, and legal complications.
If you live in Ohio, you have several options for ensuring a smooth transfer of your vehicle when you pass away. In this post, we’ll cover:
If you have a Revocable Living Trust (RLT), you may wonder whether you should title your car in the name of the trust. The answer? Probably not.
While placing assets like real estate and investment accounts into a trust can help avoid probate, most estate planning attorneys advise against putting vehicles into your RLT for a few reasons:
✔ Liability Concerns: If your trust owns the vehicle and an accident occurs, liability could extend to all assets in the trust, making them vulnerable to lawsuits.
✔ Title and Insurance Complications: Some insurance companies may require a commercial policy if a trust owns the vehicle, potentially increasing your premiums.
✔ Unnecessary for Probate Avoidance: Ohio offers a simpler way to transfer vehicles outside of probate—the Transfer on Death (TOD) designation.
That said, if you own a classic car, collectible vehicle, or RV of high value, placing it in your trust may make sense as part of a larger asset protection strategy. Discuss this with your estate planning attorney.
Ohio law allows you to use a Transfer on Death (TOD) designation for your vehicle, which is often the best way to ensure a seamless transfer without probate.
✔ Simple & Free: No need for legal fees or court involvement.
✔ Flexible: You can change or remove the TOD designation at any time.
✔ Avoids Probate: The vehicle transfers directly to your chosen beneficiary.
If you die before paying off your car loan, the debt doesn’t disappear. Here’s what happens:
🔹 Your estate is responsible for paying off the loan. The lender will file a claim against your estate for the balance owed.
🔹 If a beneficiary inherits the car, they must either pay off the loan or refinance it in their name.
🔹 If no one wants to assume the loan, the lender may repossess the vehicle and sell it to satisfy the debt.
The best option for most Ohio residents is to use a Transfer on Death (TOD) designation rather than placing a vehicle in a trust. However, if you own a valuable collectible or business vehicle, an RLT might make sense.
🔹 For everyday vehicles → Use a TOD designation.
🔹 For high-value cars, classic cars, or business vehicles → Consider a trust.
🔹 If you have a car loan → Plan for repayment in your estate.
Estate planning isn’t just about real estate and bank accounts—it’s about making things easier for your loved ones. By taking a few simple steps now, you can ensure your vehicle is transferred quickly and efficiently when the time comes.
If you’re ready to create an estate plan tailored to your needs, contact Ohio Heritage Law LLC today. We specialize in helping Ohio families protect their assets, avoid probate, and secure their legacies.
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