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 creating an estate plan, many people focus on drafting wills and trusts but may overlook one critical aspect: how property is titled. In Ohio, the way you hold title to property can have significant implications for estate planning, probate avoidance, and asset distribution.
Below, I’ll explain several different forms of property ownership and how they affect your estate plan. Understanding how you hold title to your property is the first step to ensuring that your assets are distributed according to your wishes while minimizing complications for your family.
If you own property solely in your name, it will generally pass through probate upon your death so that title can pass from your name to the name of your beneficiaries. While probate can be a straightforward process, it can also be time-consuming and expensive. Additionally, any property passing through probate becomes a matter of public record.
To avoid probate for property held solely in your name, consider including it in a revocable living trust. Titling property in the name of your trust allows the asset to bypass probate and be distributed directly to your beneficiaries upon your death. Property that is held in a revocable living trust passes to your beneficiaries without court involvement, providing greater ease and privacy in the transfer of assets.
Joint tenancy is a common way for married couples to hold property in Ohio. If you took title to real property as a married couple in Ohio after 1985, it is likely that you hold title with your spouse as “joint tenants with rights of survivorship.” Under this form of ownership, both of you have equal ownership rights, and upon the death of one owner, the property automatically transfers to the surviving joint tenant without going through probate. This can simplify the transfer of assets and avoid delays.
However, joint tenancy may not always be the best solution for estate planning. For example, suppose you want to leave a portion of the property to someone other than the surviving joint tenant. In that case, joint tenancy will override the instructions in your will or trust and can result in the unintended distribution of your property.
Unlike joint tenancy, tenancy in common allows each owner to control their share of the property independently. When one owner dies, their share is passed on according to their will or trust rather than automatically transferring to the other owner. This can be a good option if you want your portion of the property to go to heirs who are not co-owners of your property.
However, because the decedent’s share of the property must go through probate, tenancy in common does not avoid the probate process unless paired with a trust or another probate-avoidance strategy.
A Transfer on Death (TOD) deed is an excellent tool for Ohio residents to avoid probate. This type of deed allows you to designate a beneficiary who will automatically receive the property upon your death, bypassing probate altogether. Until then, you retain full control over the property and can revoke or change the TOD designation at any time.
A TOD deed is a simple and cost-effective way to ensure your property transfers to your heirs without the need for probate, making it a popular choice for estate planning.
While a TOD deed has many benefits, it is not the right strategy for every person or family. Individuals with minor children, complex family dynamics, concerns about creditor protection, Medicaid recovery, or a desire for privacy may desire the protection and flexibility of a revocable living trust versus a TOD.
If property is titled in the name of a trustee (for example, as part of a revocable living trust), it is no longer considered individually owned by you. Instead, it is owned by the trust, which continues to exist after your death. This allows the property to bypass probate and be distributed according to the terms of the trust.
One key advantage of trustee ownership is that it offers flexibility. You can dictate specific terms and conditions for how and when your beneficiaries receive the property. This can be particularly useful for families with minor children or beneficiaries who may need assistance managing their inheritance.
Titling property correctly is crucial because it determines how that property is distributed after your death. Missteps can result in unintended beneficiaries, lengthy probate processes, or costly disputes among heirs. Additionally, property that goes through probate can be more vulnerable to creditor claims.
Understanding how the way you title property affects your estate plan is vital for ensuring that your assets are passed on according to your wishes. Whether through joint tenancy, a TOD deed, or a trust, the right strategy can help you avoid probate, reduce costs, and protect your beneficiaries. Working with an experienced estate planning attorney can help you navigate these choices and create a plan that meets your needs.
If you’re in Ohio and want to discuss your estate plan or how to title your property effectively, contact me today. I’m here to help you protect your legacy and provide peace of mind for your family.
The information provided on this website is for general informational purposes only and does not constitute legal advice. Visiting this website or contacting Ohio Heritage Law LLC through this website does not create an attorney-client relationship. You should not act or rely on any information provided without seeking professional legal advice tailored to your specific situation. Ohio Heritage Law LLC does not accept representation of clients without a formal client engagement agreement. Please do not send any confidential information to Ohio Heritage Law LLC until an attorney-client relationship has been established.