Estate Tax Planning Guide

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 assurance.