What You Should Know About Real Estate Trusts in Ohio

What You Should Know About Real Estate Trusts in Ohio

Losing a loved one is never easy, and planning ahead can make this challenging time a bit more manageable. By preparing for the future, especially regarding your estate, you can spare your family additional stress. If you have significant assets, you might be worried about high taxes on gifts and inheritance. Setting up a real estate trust in Ohio is a smart way to protect your property and ensure it goes to the people you care about.

A real estate trust moves the ownership of your property from your name into a trust, managed by a trustee. This helps shield your heirs from potential disputes, court procedures, taxes, and creditors who might come knocking. If you don’t take these steps, your family could face tough situations like arguments over inheritance, lengthy probate court processes, and unexpected expenses.

If you want to avoid these difficulties for yourself and your loved ones, here’s everything you should know about real estate trusts in Ohio.


Why Real Estate Trusts Matter

Creating a real estate trust in Ohio can make things much smoother for your beneficiaries. By placing your property into a trust, your heirs can bypass probate court—a legal process that can be time-consuming and costly. Probate can take months or even years to settle, during which time your assets are tied up. The court also makes decisions about how your assets are divided and ensures any debts are paid off.

With a trust, you set clear instructions on how your property should be handled. This means your family won’t have to wait for the court to approve everything. Instead, the trustee you’ve appointed will manage the distribution according to your wishes. This not only saves time but also keeps your affairs private, as trusts aren’t part of the public record like probate cases are.


Tax Benefits of Trusts

One of the big advantages of setting up a real estate trust in Ohio is the potential tax savings. In 2021, the lifetime exclusion for gift and estate taxes was $11.7 million per person and $23.4 million for couples, adjusting each year for inflation. This means you can transfer significant assets without incurring taxes. If you’re married and your spouse passes away, their exclusion amount can transfer to you, doubling your exemption.

After you’ve reached these limits, taxes on gifts can range from 8% to 40%. By placing your home in a trust, your heirs may save a substantial amount of money. The trust can also protect your property from creditors, ensuring that your family receives what you’ve intended for them. Plus, since trusts aren’t public, your family’s privacy is maintained.


Setting Up a Trust: What You Need to Know

There are many types of trusts available, so it’s important to choose the one that best fits your situation. Here’s what you should consider when setting up a real estate trust in Ohio:

  1. Assess Your Assets: Take a close look at what you own. Your estate might be more valuable than you think, especially when you consider property, savings, and personal belongings.
  2. Choose the Right Type of Trust: Depending on your needs, you might opt for a special needs trust if you have a family member who requires ongoing support. If you’re concerned about a beneficiary who isn’t good with money, a spendthrift trust can limit their access to funds and protect the assets from their creditors.
  3. Decide Between Revocable and Irrevocable Trusts: A revocable trust can be changed or canceled during your lifetime, giving you flexibility. An irrevocable trust, on the other hand, cannot be altered once it’s set up. While irrevocable trusts offer more tax benefits and protection from creditors, they require you to give up control over the assets placed in the trust.
  4. Select a Trustee: This person will manage the trust according to your instructions. It’s crucial to choose someone you trust and to discuss the responsibilities with them beforehand.
  5. Legal Assistance: While you can create a trust on your own or use online services, it’s wise to consult with a legal professional. They can help ensure everything is set up correctly and that all legal requirements are met.

The Process of Creating a Trust

Once you’ve decided on the details, here’s how to set up your real estate trust in Ohio:

  • Gather Important Documents: Collect deeds, titles, and any other paperwork related to your property and assets.
  • Draft the Trust Agreement: This legal document outlines the terms of the trust, including who the beneficiaries are and how the assets should be managed and distributed.
  • Transfer the Property: You’ll need to change the property’s title from your name to the name of the trust. This often involves filing paperwork with the county recorder’s office.
  • Finalize the Trust: Sign the trust agreement in front of a notary public, and ensure all documents are properly filed and stored safely.

Avoiding Common Pitfalls

Setting up a trust can seem complicated, but it helps avoid many problems down the road. Without a trust, your family might face:

  • Probate Court Delays: Settling an estate through probate can take a long time, delaying your family’s access to assets.
  • Increased Expenses: Legal fees and court costs can eat into the inheritance you leave behind.
  • Family Disputes: Without clear instructions, disagreements may arise among heirs about how assets should be divided.
  • Public Exposure: Probate proceedings are public, meaning anyone can access details about your estate.

By taking the time to establish a trust, you’re helping your family avoid these issues.


We’re Here to Help

If you find yourself needing to sell property after the loss of a loved one, Lorain County Homebuyers is here to assist. We understand that this is a difficult time, and we aim to make the process as smooth as possible. We offer fair cash deals and can close quickly, often in just a few days or weeks.

Our team at Lorain County Homebuyers is experienced in handling these sensitive situations with care and professionalism. We’re happy to answer any questions you have and guide you through each step. Feel free to reach out to us at (440) 681-2114 or send us a message—we’re here to help.


Planning ahead with a real estate trust in Ohio can provide peace of mind for you and your loved ones. By understanding your options and taking action, you ensure that your family’s future is secure and that your wishes are honored. Don’t wait to start this important process; the sooner you begin, the more benefits you and your family will enjoy.

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