The Ohio Estate Tax
The Ohio estate tax was enacted in 1968 to replace a
state inheritance tax.
Under current Ohio law, the estates of residents (as
well as in state property of non-residents) with a net
taxable value of $338,333 or less are effectively exempt
from payment of the Ohio estate tax. A six percent tax
rate applies to any net taxable value above that mark,
up to $500,000. A seven percent rate applies to any net
taxable value over $500,000.
The Federal Estate Tax
The Estate Tax is a tax on your right to transfer
property at your death. It consists of an accounting of
everything you own or have certain interests in at the
date of death. The fair market value of these items is
used, not necessarily what you paid for them or what
their values were when you acquired them. The total of
all of these items is your "Gross Estate." The
includible property may consist of cash and securities,
real estate, insurance, trusts, annuities, business
interests and other assets.
Once you have accounted for the Gross Estate, certain
deductions (and in special circumstances, reductions to
value) are allowed in arriving at your "Taxable Estate."
These deductions may include mortgages and other debts,
estate administration expenses, property that passes to
surviving spouses and qualified charities. The value of
some operating business interests or farms may be
reduced for estates that qualify.
Most relatively simple estates (cash, publicly traded
securities, small amounts of other easily valued assets,
and no special deductions or elections, or jointly held
property) do not require the filing of an estate tax
return. A filing is required for estates with combined
gross assets and prior taxable gifts exceeding
$1,500,000 in 2004 - 2005; $2,000,000 in 2006 - 2008;
and $3,500,000 effective for decedents dying on or after
January 1, 2009.
The attorneys at Saia & Piatt, Inc. understand the
importance of protecting your estate, and maximizing the
cost and tax savings. We can help evaluate the short-term
and long-term projected value of your estate. Often times, a
few simple steps and some advanced planning can save you
thousands of dollars in taxes. We will make sure to guide
you through the planning process so we can save you and your
family as much money as possible and provide you with life