If you own a home in Ohio, chances are this question has come up at least once—maybe after a friend mentioned probate, maybe after scrolling late at night, maybe after realizing your house is one of your largest assets.
Should you use a Transfer on Death designation, or does a living trust make more sense?
It sounds like a simple decision, but for most Ohio homeowners, it isn’t. Both options are commonly used. Both can help keep a home out of probate. And both can cause issues if they’re used without understanding what they actually do—and what they can’t do.
In Ohio, real estate owned in your individual name generally becomes part of the probate process at death. Probate is public, it takes time, and it often adds administrative friction at a difficult moment for families. That reality is why so many homeowners look for ways to pass their home directly to loved ones with fewer delays and fewer court filings.
That search often leads to Transfer on Death designations, commonly called TOD deeds, or to revocable living trusts. While they are sometimes discussed as interchangeable, they serve very different purposes.
A Transfer on Death designation for an Ohio home works much like a beneficiary designation. You record a Transfer on Death Designation Affidavit with your county recorder during your lifetime. While you’re alive, nothing about your ownership changes. You still control the property, you can sell it or refinance it, and the person named has no legal rights to the home. If the paperwork is properly completed and recorded, the home can transfer directly to the named beneficiary at your death without going through probate.
That simplicity is exactly why many people are drawn to TODs. For a single home and a very straightforward situation, a TOD can be an efficient way to handle one asset. But it’s important to understand that it only addresses that one outcome. A TOD does not help manage bank accounts, investment accounts, or other property. It does not offer any framework if you become incapacitated. And it does not provide any structure or protection once the beneficiary receives the home.
A revocable living trust approaches things from a broader perspective. Rather than focusing on just one asset, a trust allows you to coordinate multiple assets under one plan. When you create a trust, you typically remain in control as trustee while you’re alive and able. Assets, including your Ohio home, can be titled into the trust. From a day‑to‑day standpoint, life usually feels no different—you still live in the home, maintain it, and can change or revoke the trust if your circumstances or goals evolve.
The difference becomes clear if something unexpected happens. If you become unable to manage your affairs, the successor trustee you named can step in without waiting for court involvement. After death, the trust can continue managing and distributing assets based on the instructions you established. That’s why many Ohio homeowners consider trusts not only for probate avoidance, but also for continuity, coordination, and flexibility.
At a high level, the distinction is simple. A TOD answers the question of who gets the house when you die. A trust answers additional questions: who manages things if you can’t, how multiple assets work together, and how inheritances are handled if circumstances change. This often matters most when people start thinking not just about death, but about incapacity. A TOD does nothing while you’re alive but unable to act. A trust is specifically designed with that possibility in mind.
Privacy also factors into the decision. Probate proceedings in Ohio are public record. While Transfer on Death affidavits are recorded, trusts can help keep many details about how assets are managed and distributed out of probate court filings. This can be especially relevant for families who value discretion or who own multiple properties.
Owning property outside Ohio introduces another layer. TOD rules vary by state, and using them for out‑of‑state property can involve additional complexity. A properly structured trust, on the other hand, can often hold property in multiple states, which is one reason trusts are commonly explored by retirees and families with vacation homes.
Another area where the differences become clearer is beneficiary protection. When a beneficiary inherits a home directly through a TOD, that property typically becomes part of their personal financial situation. Depending on their circumstances, this may or may not be an issue. Trusts can be designed to allow for more controlled distributions, ongoing management, or timing provisions. Not every family needs that structure, but when they do, a TOD usually isn’t equipped to handle it.
Ohio homeowners often run into problems not because they chose the “wrong” tool, but because they treated it as a quick fix. Some record a TOD for their home but leave other assets uncoordinated, which can still trigger probate. Others create a trust but never transfer the home into it, limiting its effectiveness. Estate planning tends to work best when deeds, accounts, beneficiary designations, and intentions are reviewed together rather than piece by piece.
So which option is better for your Ohio home? For a very simple situation—one property, one adult beneficiary, minimal other assets—a Transfer on Death designation may be appropriate. As assets, family dynamics, and long‑term planning goals become more complex, a revocable living trust is often explored because it can address both life events and legacy goals in a single framework. There is no one‑size‑fits‑all answer, and decisions based solely on online forms or generalized advice often overlook important details.
This discussion is intended for general educational purposes only and should not be interpreted as legal, tax, or investment advice. Laws change, and individual circumstances vary. Before changing how your home is titled, creating a trust, or updating beneficiary designations, Ohio homeowners often benefit from coordinating with a qualified estate planning attorney and a fee‑only fiduciary advisor. Thoughtful planning is rarely about choosing a single document—it’s about making sure everything works together when it matters most.
DISCLOSURE: This article is provided for general educational purposes only and should not be interpreted as legal, tax, or accounting advice. John E. Sestina & Company is a registered investment adviser. Our CFP® professionals are not CPAs or attorneys. Estate planning laws, including probate and transfer‑on‑death rules, vary by state and individual circumstances. Readers should consult qualified legal and tax professionals before making changes to property ownership or estate plans.
