Land Trusts in Ohio: How They Offer Privacy and Help Avoid Probate

If you own property in Ohio, you've probably heard about different ways to protect your assets and make life easier for your loved ones down the road. One tool that doesn't get nearly enough attention? The land trust.

Land trusts offer something pretty valuable: privacy and a way to skip the probate process in Ohio. Whether you're a real estate investor, a property owner who values their privacy, or someone who just wants to simplify things for their family, understanding how land trusts work could save you time, money, and a whole lot of headaches.

Let's break it all down in plain English.

What Exactly Is a Land Trust?

A land trust is a legal arrangement where you transfer the title of your real estate to a trustee. The trustee holds that title on your behalf, but here's the key part: you (the beneficiary) keep control over everything. You decide what happens with the property, whether to sell it, rent it out, or pass it to your kids. Think of it like this: your name comes off the public record, but you're still the one calling the shots behind the scenes.

In Ohio, a land trust works as a type of revocable living trust. That means you can change it, update it, or cancel it entirely whenever you want. It's flexible, which is one of the reasons people like it.

How Does a Land Trust Work in Ohio?

Setting up a land trust in Ohio involves a few basic steps:

1. You create the trust document. This spells out how you want the property handled: who manages it, who benefits from it, and what happens when you pass away.
2. You name a trustee. This could be a family member, a trusted friend, an attorney, or even a professional trustee. The trustee's name goes on the property title instead of yours.
3. You transfer the property. The deed gets recorded with the trustee listed as the title holder. Your name stays off the public record.
4. You retain control. As the beneficiary, you still make all the decisions about the property. The trustee simply follows your instructions.

When you pass away, the property transfers according to the terms in your trust document: no probate court required.

The Privacy Advantage: Keeping Your Business, Your Business

One of the biggest reasons people set up land trusts in Ohio is privacy. When you own property in your own name, that information is public record. Anyone can look up your address and see that you own it. That might not seem like a big deal until you think about:

• Unwanted solicitations from investors, marketers, or scammers
• Personal safety concerns if you're in the public eye
• Competitive business situations where you don't want others knowing your holdings

With a land trust, the trustee's name appears on the title: not yours. So when someone searches the county records, they see the trustee's name, not your personal information.

This is particularly helpful for:

• Real estate investors who own multiple properties
• High-net-worth individuals
• Anyone who simply values keeping their financial affairs private

It's worth noting that this privacy isn't absolute. In certain legal situations, your ownership can still be discovered. But for everyday purposes, a land trust keeps your name out of public view.

Avoiding Probate in Ohio: Why It Matters

Here's a reality check: if you own property in your own name when you die, it has to go through Ohio probate. That means court involvement, legal fees, and a process that can drag on for months, sometimes even years. Probate costs in Ohio add up quickly. You've got court filing fees, attorney fees, executor fees, and potential appraisal costs. And the whole time, your family is waiting to receive what you wanted them to have.

A land trust sidesteps all of that.

Because the property is held in trust, it passes directly to your named beneficiaries according to your trust instructions. No court approval needed. No public probate proceedings. Your family gets the property faster, with less expense and less stress.

If avoiding probate in Ohio is a priority for you, a land trust is one of the most straightforward tools to make that happen.

Land Trusts vs. Other Real Estate Ownership Options

You might be wondering how a land trust compares to other ways of holding property. Let's look at a few common options:

Owning Property in Your Own Name

• Pros: Simple, no setup required
• Cons: No privacy, property goes through probate, fully exposed to personal liability

Joint Ownership with Right of Survivorship

• Pros: Property passes automatically to the surviving owner
• Cons: No privacy, the other owner has rights to the property during your lifetime

Transfer on Death (TOD) Affidavit

• Pros: Avoids probate, relatively simple to set up
• Cons: No privacy (your name is still on the deed), doesn't provide any protection during your lifetime

Revocable Living Trust

• Pros: Avoids probate, offers privacy, flexible, can hold many types of assets, offers incapacity planning
• Cons: No privacy, your name is still on the public record, as trustee

Land Trust

• Pros: Avoids probate, provides privacy, you retain control, works well for individual properties
• Cons: Doesn't offer significant asset protection

For many Ohio property owners, a land trust hits a sweet spot: it's more private than a TOD affidavit and simpler than setting up a full revocable living trust just for one property.

Pros and Cons of Using a Land Trust in Ohio

Let's be real: no estate planning tool is perfect for everyone. Here's an honest look at the benefits and drawbacks:

Pros

• Privacy protection: Your name stays off public records
• Probate avoidance: Property transfers without court involvement
• Flexibility: You can change or revoke the trust at any time
• Control: You still make all the decisions as beneficiary
• Simplified transfers: Easy to add or remove beneficiaries

Cons

• Not complete asset protection: A land trust alone won't shield you from lawsuits or creditors
• Setup required: You'll need to create the trust document and transfer the deed

Tax Considerations and Common Misconceptions

Here's something people often get wrong: a land trust does not provide tax benefits on its own.

For income tax purposes, property held in a land trust is still treated as if you own it personally. You report rental income, claim deductions, and handle capital gains the same way you would otherwise. Land trusts also don't automatically protect you from creditors or lawsuits. If someone sues you and gets a judgment, they may still be able to reach property held in a land trust. For stronger asset protection, you might need additional strategies.

The bottom line: land trusts are great for privacy and probate avoidance, but they're not a magic shield against every risk.

Who Should Consider a Land Trust in Ohio?

A land trust might be a good fit if you:

• Own rental properties and want to keep your ownership private
• Value your personal privacy and don't want your name on public records
• Want a simple way to avoid probate on a specific property

On the other hand, if your primary goal is asset protection or tax savings, you'll want to explore additional options with an attorney.

Ohio-Specific Notes

Unlike some other states, Ohio doesn't have specific land trust statutes. That means Ohio land trusts operate under general trust law. They work, but they don't have the same ironclad statutory framework you'd find elsewhere.

This makes it especially important to work with an attorney who understands Ohio probate law and can draft a land trust that actually accomplishes your goals.

Ready to Learn More?

Land trusts aren't right for everyone, but for the right situation, they're a powerful tool. If you're curious whether a land trust makes sense for your Ohio property, contact our office and let's talk through your options. We're here to help you protect what matters most (without the legal jargon.)