For many Ohio families, the house is the largest asset they own, and it is often the one asset that forces a probate case after a death. Ohio law gives homeowners a simple way to avoid that: the Transfer on Death Designation Affidavit.
How it works
The owner signs an affidavit naming one or more beneficiaries and records it with the county recorder. Nothing changes during the owner's lifetime. The owner keeps full ownership and can sell the property, refinance it, or change or revoke the beneficiaries without asking anyone's permission. The beneficiaries have no rights in the property until the owner dies.
After the owner's death, the beneficiary records an affidavit along with a copy of the death certificate, and the property passes to the beneficiary without opening a probate estate.
Details that matter
- The affidavit must be signed and recorded before the owner's death. An unrecorded affidavit found in a drawer does not work.
- If you are married, your spouse generally needs to sign to release dower rights.
- Name contingent beneficiaries, and decide what happens if a beneficiary dies before you do. The affidavit can pass a deceased beneficiary's share to that person's descendants.
- A later affidavit, a sale, or a deed can override an earlier designation, so the affidavit should be reviewed whenever your plan changes.
What it does not do
A transfer on death designation avoids probate, but it does not take the property out of reach of the owner's debts. Property that passes this way can still be subject to certain claims, including Ohio Medicaid estate recovery. It also does not replace a will, and it may not be the right tool when a beneficiary is a minor, receives public benefits, or should not receive property outright. In those cases a trust is often the better choice.
If you would like to know whether a transfer on death designation fits your plan, call our Middletown or Monroe office and we will walk through it with you.