Creating a living trust is one of the most effective ways to manage your assets, avoid probate, and provide clear instructions for your beneficiaries. In Ohio, many people place their real estate into a living trust, but handling property in this way requires special care.

Whether you’re buying, selling, refinancing, or moving property in or out of a trust, the process can look different than a typical real estate transaction. Understanding these differences helps you avoid costly mistakes and ensures your trust works as intended.

Transferring Real Estate Into a Living Trust

The first step in handling real estate in a living trust is making sure the property is properly transferred. Simply naming the real estate in a trust document isn’t enough. The title must reflect the change.

In Ohio, this means executing and recording a new deed with the county recorder’s office. Typically, this is a quitclaim deed or warranty deed that transfers ownership from you as an individual to you as trustee of your living trust. For example, the title would change from “John and Mary Smith” to “John Smith and Mary Smith, Trustees of the Smith Family Living Trust dated 10-13-2025.”

Getting the deed right is critical. If it’s not recorded properly, the property may still be considered owned in your individual name, which can lead to probate

Other key considerations include:

• Mortgages: If the property has a mortgage, most lenders allow the transfer into a living trust without triggering a due-on-sale clause. However, it’s wise to notify the lender to avoid surprises.
• Insurance: Update homeowners insurance so the trust is listed as an additional insured party. This ensures coverage applies no matter what happens.
• Taxes: Transferring property into a trust does not trigger property taxes in Ohio. However, you are required to submit a Conveyance Fee Exemption form to the County Auditor to keep from paying the conveyance fee on the transfer..

Selling or Refinancing Real Estate in a Trust

At some point, you may decide to sell real estate that’s already in your living trust or refinance an existing mortgage. Both situations require extra steps.

When selling, you will sign all documents as trustee on behalf of the trust. The purchase agreement, deed to the buyer, and closing documents will name you in your trustee capacity. Title companies and real estate agents are accustomed to this, but it’s important to provide a memorandum of trust to prove your authority to act on behalf of the trust.

Refinancing is often more complicated. If a bank is going to lend money and take a mortgage as security on real estate owned in a trust, they will usually require that a complete copy of the trust be presented and reviewed by their legal department prior to approving the loan. It can therefore be preferable to take your real estate out of the trust temporarily, refinance in your individual name, and then deed the real estate back into the trust once the loan closes. While this adds an extra step, it’s common practice and helps the lender ensure their lien is recorded without questions about trust ownership.

Tips for smoother transactions include:

• Provide documents upfront. A memorandum of trust usually satisfies a title company’s or lender’s requirements without having to provide the full trust document.
• Plan for timing. If property must be deeded out of the trust for refinancing, make sure to complete the deed back into the trust after the mortgage for your refinance has been recorded. Forgetting this step can cause the real estate to go through probate.

Moving, Gifting, or Passing Real Estate Through the Trust

Beyond buying and selling, a living trust also affects how property is gifted, moved, or inherited. In Ohio, these situations come up frequently, especially when families are relocating or planning to pass property to children.

If you move and purchase a new home, you’ll want to deed the new property into the trust as soon as possible. If you’re getting a loan to finance the purchase, you should buy in your name and then transfer the real estate to your trust after the mortgage for your purchase has been recorded. . Many buyers forget this step, assuming their estate plan automatically covers the new home. Unless the deed lists the trust, the property may end up in probate.

If you want to gift property during your lifetime, the trust makes this more straightforward. As trustee, you can deed the property out of the trust to the recipient. However, you’ll need to weigh potential gift tax implications and whether giving away the property aligns with your long-term planning goals.

One of the biggest benefits of holding real estate in a trust comes at death. Instead of going through probate, the successor trustee follows the instructions in the trust. They can transfer the property directly to beneficiaries, continue to hold it in trust, or sell it according to your wishes. This process is generally faster, less expensive, and more private than probate.

Important points to keep in mind:

• Beneficiaries avoid probate delays. Property can pass directly under the trust, often within weeks instead of months.
• Special property types require added care. Farms, family cabins, or rental properties often have added value beyond money. The trust should clearly state whether these properties should be kept or sold, reducing the risk of family disputes.

Keeping your trust updated ensures your real estate passes smoothly according to your intentions.

Keep Your Ohio Real Estate Protected for the Future

Handling real estate in a living trust in Ohio involves more than simply naming property in the document. You must properly deed property into the trust, carefully manage transactions like sales or refinancing, and make sure your ownership is aligned with your trust if you purchase new real estate . Doing this correctly protects your family, avoids probate, and keeps your estate plan strong.

If you have real estate in a living trust—or you’re considering creating one—Legacy Law Group can help. Our attorneys guide Ohio families through every step, from drafting trusts to handling complex property transfers. Call our office today to schedule a consultation.