If you’re thinking about putting your home in an irrevocable trust, you’re probably trying to protect your assets, prepare for long-term care, or ensure your estate avoids probate. In Ohio, an irrevocable trust can be a powerful estate planning tool, but it’s one that comes with specific rules and lasting consequences. Before you sign over your home, it’s important to understand what really happens next.

Your Legal Ownership Changes

Once you place your home in an irrevocable trust, you no longer legally own it. The trust becomes the new owner, and the trustee you name now controls the property. This isn’t just paperwork—it’s a real transfer of ownership that limits your rights to the property moving forward.

This shift can feel dramatic. If you’re used to having full control over your home, this step may take some getting used to. Your trustee—whether it’s a trusted family member or a third party—has a fiduciary duty to manage the trust property according to the terms you’ve outlined in the trust document. That includes the home.

In practical terms, here’s what changes:

• You can’t sell the home on your own.
• You can’t refinance the property.
• You can’t revoke the trust or take the home back.

That’s what makes the trust irrevocable. Once the transfer happens, you’ve handed over control of the trust and all the assets in the trust.

However, you don’t necessarily have to move out. Many people set up the trust to allow them to live in the home for the rest of their lives. This arrangement is common and can be spelled out clearly in the trust document. Just keep in mind that while you may still live there, it’s the trust—not you—that owns it.

You May Protect the Home from Medicaid and Creditors

One of the biggest reasons Ohio residents transfer their home into an irrevocable trust is to protect it from long-term care costs and creditors. If done correctly and early enough, this strategy can be effective.

Using an irrevocable trust is a major advantage over simply gifting your home outright. With a trust, you can set rules—such as who gets the home after you pass, or whether it must be sold. You retain more control over the long-term outcome than you would by transferring the house directly to a family member.

An irrevocable trust can also shield your home from certain creditors. Since you no longer own the property, it generally cannot be seized to satisfy debts incurred after the trust was created. In addition, because the home is owned in the irrevocable trust and not by your children as individuals, the home isn’t subject to their creditors either.

Your Tax Situation and Estate Plan Will Look Different

Transferring your home to an irrevocable trust in Ohio comes with tax considerations, too. The way the trust is structured can affect everything from your property taxes to how much your beneficiaries owe in capital gains after you pass.

Here’s what to keep in mind:

• Property Taxes: In Ohio, if you’re over 65 or disabled, you may be eligible for the Homestead Exemption, which lowers your property taxes. Placing your home in a trust could affect your eligibility. But if the trust is properly drafted and you still live in the home, you may be able to keep the exemption. It depends on the language of the trust and how ownership is reported to the county.
• Capital Gains: One of the risks with irrevocable trusts is how they impact capital gains tax. If your beneficiaries inherit the home and it’s not structured correctly, they may miss out on the step-up in basis. That means they could pay more in capital gains taxes when they sell the house later.
• Income Taxes: Depending on how the trust is drafted, any income generated by trust assets could be taxed at a high trust tax rate. While your home typically doesn’t produce income, other assets inside the trust might. It’s worth thinking about how the trust handles taxes each year.
• Estate Planning Benefits: One of the major benefits is that the home will avoid probate. That means your loved ones won’t have to go through court to transfer the property after your death. You can direct exactly who gets the home and under what conditions. This can make life a lot easier for your family during a difficult time.

The success of this plan depends entirely on how the trust is set up. If your trust is vague, or if it fails to meet Ohio’s legal requirements, the courts may ignore it. That’s why clarity and compliance are key.

If You’re Considering a Trust, We Can Help You Do It Right

Transferring your home into an irrevocable trust is a big decision and one that should never be made without understanding the full picture. You’re giving up control now to gain protection later. Done well, this move can preserve your home, protect your legacy, and keep your family out of court.

At Legacy Law Group, Ltd., we help Ohio families create estate plans that work when they’re needed most. If you’re thinking about putting your home in an irrevocable trust, reach out today. We’ll walk you through your options and help you build a plan that meets your needs, today and tomorrow.