Estate Tax

     The estate tax is governed by Chapter 5731 of the Ohio Revised Code and is reported and calculated on the Ohio Estate Tax return (E.T. Form 2).  January 1, 2001 statutory changes became effective that change the filing requirements for Ohio estate tax returns.  For dates of death on or after January 1, 2001, an estate with gross assets valued at $200,000 or less is not required to file an Ohio estate tax return.  This amount increases to $338,333 effective January 1, 2002.  An Estate Tax return is required to be filed within nine months of a person's date of death for dates of death prior to January 1, 2001.  For dates of death on or after January 1, 2001 an automatic extension is granted, if requested in writing on ET Form 24, prior to the expiration of the fifteen month period.  This extension does not effect the requirement that estate taxes are due nine months from the date of death.  Any payments made after nine months from   the date of death will still be charged statutory interest. 
     The estate tax return is filed with the Probate Court.  The tax due is based on the net value of the decendents estate.  This net value is based on the gross value minus the debts and funeral expense of the estate.  The gross value is made up of all assets, such as real estate, bank accounts, stock bonds, and such.  The debts and administrative expenses are made up of funeral costs, attorney and executor fees, outstanding bills in the name of the decendent, and such.  Ohio allows an unlimited marital deduction that allows property to pass from one spouse to another without taxation.  Ohio also allows credit on the taxes due.  Taxes are paid at the Auditor's office.  It is strongly recommended that an attorney be retained to prepare estate tax returns.
     January 1, 2001 statutory changes became effective that also affect the distribution of estate tax revenue to subdivisions for Ohio estate tax returns.  The distribution of estate revenues to subdivisions, for dates of death on or after January 1, 2000, will increase from 64% to 70% while the states share will decrease from 36% to 30%. For dates of death on or after January 1, 2002, eighty (80) percent of the tax is distributed to the municipal corporation, village or township in which the tax orginates and twenty (20) percent to the State of Ohio.
     Complete information on these changes can be obtained from the Estate Tax Division of the Ohio Department of Taxation.  Their toll free number is 1-800-977-7711.  You may download forms directly related to Estate Taxes from the State of Ohio's Tax forms link by clicking here.  You may also contact the Auditor's office for information.