If you’re approaching retirement or already enjoying your golden years in Ohio, you’ve probably started thinking about what to do with your home.
When it comes to real estate options for seniors in Ohio, you probably have some questions.
Should you sell and downsize? Could a reverse mortgage help fund your retirement? Maybe you want to transfer the property to your children while you’re still around to see them enjoy it?
These are big decisions that affect your retirement security and your family’s future. At Kabb Law, we help Ohio seniors navigate these real estate decisions with confidence—no confusion, no regrets, just clear guidance tailored to your situation.
Here’s a reality tip for you: real estate transactions in Ohio have lots of fine print—even more than a cell phone contract. Is selling your home on your retirement “things to do” list? Are you thinking about a reverse mortgage? Do you want to hand the keys to your kids and call it a day? All of these options have hidden twists, and pretending those details don’t exist is a fast track to headaches.
Kabb Law would like to break down the basics—no legalese, just what you really need to know before you start filling out forms.
Selling Your Home in Retirement: What Cleveland Seniors Need to Know
Selling your home looks simple when you see it printed on paper. You only have to clean it up, find a buyer, and pack your belongings—you’re on your way. DREAMER! It is not that easy.
You will definitely need to spruce up your home, which means spending many evenings acting as if you’re on a home makeover show. Why? Because buyers always notice chipped paint or the hole in the wall where a painting of your husband’s great-great-aunt used to hang.
Capital Gains Tax Exemptions for Seniors Selling Their Primary Residence
Next come these expenses: Real estate commissions, moving costs, transfer taxes, and then, if you’ve made a neat little profit, come the capital gains taxes.
Could there be an upside? Yes!
For example, if you’ve been in the house for at least two of the last five years, there’s a possibility that you may get a hefty tax exemption on your profits. According to the IRS, it could be up to $250,000 if you’re single, $500,000 if you’re married and filing jointly. This exemption is available regardless of your age—it’s based on how long you’ve lived in the home as your primary residence.
Hidden Costs of Selling: What to Budget Beyond Real Estate Commissions
KABB ALERT! Don’t forget about the costs that sneak up on seniors during a home sale:
- Real estate agent commissions (typically 5-6% of the sale price)
- Title insurance and closing costs
- Home repairs and staging costs
- Moving expenses (many Cleveland seniors find that selling before winter makes the moving process easier and less stressful)
- Storage fees if you’re downsizing
- Potential capital gains taxes on profits above the exemption threshold
But you always need to check with a tax professional before making any big moves or planning to invite Rachel Kabb Effron to a celebration dinner.
Timing Your Home Sale for Maximum Benefit
When you sell matters, especially if you’re on a fixed income. Consider these timing factors:
- Tax year planning: Selling early in the year gives you time to plan for any tax implications
- Market conditions: Northeast Ohio’s real estate market has seasonal patterns—spring and early summer typically bring more buyers
- Your moving timeline: Coordinate the sale with your retirement plans or move to a senior community
- Health considerations: If you’re planning ahead for potential long-term care needs, timing your sale strategically can protect your assets
An experienced estate planning attorney can help you coordinate the timing of your home sale with your overall retirement strategy.
Reverse Mortgages for Seniors Over 62: The Complete Picture
Here’s the reverse mortgage pitch: Folks over the age of 62 can tap into their home equity without needing to move out. You get paid a handsome sum, and you don’t have to pay the bank back until after you move, sell, or pass away. Doesn’t that sound great?
How Reverse Mortgages Work for Ohio Homeowners
KABB ALERT! Don’t let the commercials fool you. Here’s what they don’t emphasize in those TV ads with the smiling retirees on the beach:
A reverse mortgage is essentially a loan against your home’s equity. Instead of you paying the bank each month, the bank pays you—either in a lump sum, monthly payments, or as a line of credit. The loan balance grows over time as interest accumulates, and the loan doesn’t need to be repaid until you permanently leave the home.
The U.S. Department of Housing and Urban Development (HUD) requires all potential reverse mortgage borrowers to complete counseling with a HUD-approved agency before proceeding. This counseling is designed to ensure you fully understand what you’re getting into—and that’s a good thing.
What You’ll Still Be Responsible For (Taxes, Insurance, Maintenance)
Here’s what catches many seniors off guard: You will still be responsible for property taxes, homeowners insurance, and basic maintenance, or (worst case scenario) the lender might simply say, “Game over” and foreclose on your home.
That’s right—even with a reverse mortgage, you can still lose your home if you:
- Fail to pay property taxes
- Let homeowners’ insurance lapse
- Don’t maintain the property in reasonable condition
- Stop using the home as your primary residence for more than 12 consecutive months (important if you need extended nursing care)
Special consideration if you’re married: If your spouse is under 62, there are special protections and complications to discuss with an elder law attorney. Without proper planning, your younger spouse could face difficulties if you pass away first.
How a Reverse Mortgage Affects Your Estate and Heirs
It’s not all headache-inducing. A reverse mortgage can help if you need to boost your budget in retirement. The Consumer Financial Protection Bureau offers free resources to help seniors evaluate whether a reverse mortgage is right for their situation.
The downside is that whatever you borrow (plus interest that compounds over time) comes out of the value of your house when it’s sold. Results: Either your children will inherit less, or the sale of your home gets a bit rushed when you’re gone to pay off the loan.
Important note about your retirement benefits: A reverse mortgage does NOT affect your Social Security or Medicare benefits. Many seniors worry about this, but these federal benefits are entirely separate from your home equity decisions.
Consider alternatives: Before jumping into a reverse mortgage, explore other options such as a home equity line of credit (HELOC), downsizing to a smaller home, or Ohio’s property tax relief programs for seniors. Everyone’s situation is different. Talk it over with your family, and we can refer you to a financial professional who works for you, not the lender.
Gifting Your Home to Your Children: What Seniors Should Know First
Several senior citizens dream of “just give the house to the kids.” But, in reality, property transfers are loaded with details that can have serious consequences for your retirement security and your family’s finances.
Gift Tax Rules When Transferring Property to Family
Kabb Law can help you get through these issues: If you transfer your home to your children for less than fair market value, the IRS could treat the difference as a gift. For 2025, you can gift up to $18,000 per person per year without filing a gift tax return, but the value of most homes far exceeds this amount.
The good news? Most people never actually pay gift tax because of the lifetime estate and gift tax exemption (currently over $13 million per person). However, you still need to file IRS Form 709 to report the gift, and it counts against your lifetime exemption.
How Gifting Your Home Affects Medicaid Eligibility
KABB ALERT! This is where things get really serious for seniors: If you gift your home and need nursing home care within five years, you could face Medicaid penalties.
Here’s what many Ohio seniors don’t know: Medicaid has a five-year “lookback period” for asset transfers. If you gave away your home (or any substantial asset) within five years before applying for Medicaid coverage for nursing home care, you may be disqualified from coverage for a penalty period.
Given that nursing home care in Ohio can cost $8,000-$12,000 per month, a Medicaid penalty period can be financially devastating. This is one of the most important reasons to consult with an elder law attorney before making any property transfers.
What about your home and Medicaid eligibility? In many cases, you can keep your home and still qualify for Medicaid for nursing home care, especially if your spouse still lives there. The rules are complex, but giving away your home isn’t always necessary—or smart.
Estate Planning Tools for Seniors: Which Option Is Right for You?
Do you want to leave the house to your children? The cleanest way is usually through a will or a living trust that Kabb Law will create with you. Here’s why this often makes more sense than gifting the home while you’re alive:
The “Step-Up in Basis” Benefit: When your children inherit your home after you pass away, they receive what’s called a “step-up in basis.” This means the home’s value is reset to its fair market value at the time of your death. If they sell it shortly after inheriting, they typically owe little or no capital gains tax.
Example: You bought your home for $100,000, and it’s now worth $300,000. If you gift it to your children now and they later sell it for $300,000, they could owe capital gains tax on $200,000 of profit. But if they inherit it and sell it for $300,000, they owe no capital gains tax because of the step-up in basis.
This tax benefit alone can save your family tens of thousands of dollars—a powerful reason to keep the home in your name until you pass away.
Life Estates Explained: Keeping Control While Planning Ahead
Some folks look into life estates or co-ownership setups. A life estate allows you to transfer ownership of your home to your children while retaining the right to live there for the rest of your life. It sounds appealing, but there are catches:
- You lose control—you can’t sell or refinance without your children’s agreement
- If your children face creditors, liens, or divorce, your home could be affected
- It may still trigger Medicaid lookback issues
- You lose the flexibility to change your mind if circumstances change
There’s no “set it and forget it” solution. If you’re thinking about helping your family or if you simply want to keep things simple, professional advice from an experienced estate planning attorney can save a mountain of headaches later.
Staying in Your Home vs. Selling: What’s Right for Your Retirement?
Before making any major real estate decisions, consider whether staying in your current home aligns with your retirement goals. AARP’s housing resources offer valuable tools for evaluating your options.
Aging in place considerations:
- Is your home accessible for potential mobility challenges? (single-story living, bathroom modifications, wider doorways)
- Can you afford ongoing maintenance and repairs on a fixed income?
- Are you near family, medical care, and community resources?
- Does your home fit your current lifestyle, or is it too large to maintain?
Ohio property tax relief for seniors: Many Cleveland-area seniors don’t realize they may qualify for the Ohio Homestead Exemption, which can reduce property taxes. This program helps seniors stay in their homes by reducing the tax burden.
Long-term care considerations: If you anticipate needing assisted living or nursing home care in the future, keeping your home may provide valuable flexibility. The equity in your home can help pay for care, or the home itself may be protected while you receive Medicaid benefits for nursing home care—if you plan correctly.
An elder law attorney can help you understand how your home fits into your long-term care planning and whether modifications to your estate plan could protect both your home and your eligibility for benefits.
Common Questions from Ohio Seniors About Real Estate Decisions
Will selling my home affect my Social Security benefits?
No. The proceeds from selling your home do not affect your Social Security retirement benefits or Medicare coverage. Your Social Security is based on your work history, not your assets. However, if you receive Supplemental Security Income (SSI), large assets can affect eligibility, so consult with an advisor.
If I get a reverse mortgage, can the bank take my home while I’m alive?
Not if you meet your obligations. You can stay in your home as long as you pay property taxes, maintain homeowners insurance, keep the property in good condition, and use it as your primary residence. The loan only becomes due when you permanently move out, sell, or pass away. However, failing to meet these obligations can result in foreclosure.
Should I add my children’s names to my deed? Usually no. While it might seem like a simple way to avoid probate, adding your children to your deed can create serious problems:
- They become co-owners with immediate rights to the property
- Their creditors could place liens on your home
- You’ll need their permission to sell or refinance
- They lose the valuable step-up in basis for tax purposes
- It may trigger Medicaid penalties if you need long-term care A properly structured trust or transfer-on-death designation is typically a much better solution.
How does keeping my home affect nursing home eligibility? This depends on several factors. In Ohio, Medicaid allows you to keep your home and still qualify for nursing home coverage if:
- Your spouse still lives there, OR
- You intend to return home, OR
- An adult disabled child or minor child lives there However, after you pass away, Ohio may seek to recover costs from your estate (including your home) through Medicaid estate recovery. Planning with an elder law attorney can help protect your home for your heirs while ensuring you can access the care you need.
Can I sell my home and still qualify for senior property tax exemptions in my new home? Yes. If you qualify for Ohio’s Homestead Exemption based on age (65+), disability, or being the surviving spouse of someone who qualified, you can transfer this benefit to a new primary residence in Ohio. You’ll need to reapply in your new county, but the benefit follows you, not the property.
Why Ohio Seniors Should Consult an Estate Planning Attorney
Real estate decisions in retirement aren’t just about property—they’re about protecting your financial security, maintaining your independence, and leaving a legacy for your family. The choices you make today about your home can affect:
- Your retirement income and quality of life
- Your eligibility for Medicaid if you need long-term care
- The inheritance your children receive
- Your family’s tax burden
- Your ability to stay in your home as you age
These decisions are too important to guess at or rely on advice from well-meaning friends or TV commercials. What worked for your neighbor might be disastrous for your situation.
At Kabb Law, Rachel Kabb Effron has helped hundreds of Northeast Ohio seniors make confident real estate decisions that protect their interests and their families. She understands the unique challenges facing Ohio seniors and can help you navigate the complex intersection of real estate law, estate planning, elder law, and Medicaid planning.
Real Estate Options For Seniors: Don’t Navigate These Decisions Alone
When it comes to real estate options for seniors, remember this. Your home is likely your largest asset, and the decisions you make now will affect your retirement security and your family’s future. Whether you’re considering selling, exploring a reverse mortgage, or planning to transfer your property to your children, Kabb Law provides the experienced guidance Ohio seniors deserve.
A little planning today can spare you and your family a whole lot of dramatic headaches. Making this smart move today—scheduling a consultation with an experienced estate planning attorney—can provide peace of mind and protect everything you’ve worked so hard to build.
Call Rachel Kabb Effron at 216-991-5222 today for a free consultation where we’ll discuss your specific situation—no pressure, just honest advice tailored to your retirement goals.
Don’t wing it. Ask questions. Think through the “what ifs.” Professional advice from Kabb Law goes a long way toward protecting your home, your retirement, and your family’s future.
Kabb Law Firm
Serving Northeast Ohio Seniors with Estate Planning, Elder Law, and Real Estate Guidance
📞 216-991-5222
🌐 www.kabblaw.com
