In Ohio, an Estate Tax return is filed within nine months of a person’s date of death. The tax due is based on the net value of the decedent’s estate. This net value is based on the gross value minus the debts and administration expenses of the estate. The gross value is made up of all assets, such as real estate, bank accounts, bonds, personalty, and such. The debts and administration expenses are made up of funeral costs, attorney and executor fees, outstanding bills in the name of the decedent, and such. Ohio allows an unlimited marital deduction that allows property to pass from one spouse to another without taxation.
House Bill 153 changed ORC 5731.21(A)(3) to state that no Estate Tax returns shall be filed for estates of decedents dying on or after January 1, 2013, making deaths during calendar year 2012 the last to be taxed under this section.
Effective for dates of death on or after January 1 , 2002, the maximum tax credit is $13,900 is allowed. Taxes are paid at the Auditor’s office.
The Auditor also issues Consent to Transfer Property (Tax Releases) for Estates. These releases are issued only for assets and accounts with a value greater than $25,000. For assets held jointly between husband and wife only, no release is necessary for any amount. These releases serve two purposes. First, it notifies the financial institution that it may transfer ownership of the asset. Second, it notifies the Department of Taxation that the estate and asset exist and that an estate tax return may be necessary.
For all dates of death on or after January 1, 2002, Section 5731.02 of the Ohio Revised Code, allows a tax credit of $13,900. This credit effectively raises the floor for when an Estate Tax return must be filed from $200,000 to $338,333.
Section 5731.48, of the Ohio Revised Code, changes the tax distribution formula. For all dates of death on or after January 1, 2002, the distribution formula will be 80% to the local political subdivision where the decedent was a resident at the time of death and 20% to the State of Ohio General Revenue Fund.
In addition, an Estate tax return must be filed in duplicate at the Probate Court of the county where the decedent was domiciled at date of death. A Certificate of Estate Tax Payment and Real Property Disclosure (E.T. Form 22) must accompany the state tax return.
Effective for dates of death on or before January 1, 2001 the Tax Commissioner has authorized an automatic six-month extension of time to file the Ohio Estate Tax Return. This permits estates with a date of death on or after January 1, 2000 to have a total of 15 months to file the return. This policy change will be implemented subject to the following provisions:
(1)Any additional six-month extensions must be requested in writing on the E.T. Form 24 prior to the expiration of the 15-month deadline. This can be done via facsimile, hand-delivery, or mailed directly to the Ohio Department of Taxation, Estate Tax Division.
(2)Interest on any Estate Tax due will be calculated from nine months from date of death regardless if the estate utilizes the automatic or additional extensions.
Effective January 1, 2001, the tax commissioner will no longer require the inventory of a safe deposit box upon the death of the owner, co-owner or any other person having access to the box, regardless of the date of death. The only exception will be when the Probate Court gives a specific instruction to do so.
For further information, please contact the Auditor’s Estate Tax department at (740) 622-1243 or the Ohio Department of Taxation at 1-800-977-7711.