Estate Tax

In Ohio, an Estate Tax return is filed within nine months of a person’s date of death. One copy is filed with the Probate Court and a second copy is filed with the County Auditor, as agent of the Ohio Tax Commissioner. 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, stocks, 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. Ohio also allows a credit of $500 on the taxes due. Taxes are paid at the Auditor’s office. It is strongly recommended that an attorney be retained to prepare this return.

The Auditor also issues Consent to Transfer Property (Tax Releases) for Estates. 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.

The monies collected from the estate tax are distributed by law, 20% to the State of Ohio and 80% to the taxing district (Township or Village) in which the decedent had resided and/or owned property.

Important Information to All Practitioners Using Computer Generated Forms for Estate Tax:

At a recent training seminar conducted by the The Ohio Department of Taxation, Estate Tax Division, the topic of computer generated forms was discussed.

Per the Department, only those forms that exactly match the forms prescribed by the Department are acceptable. If you are using computer generated forms, such as those prepared by Perfect Probate© or ProBATE Software Publishing Co.© , they must be sent to the Department for their approval.