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Estate Tax
Probate & Non-Probate Assets
Wills
Durable Power of Attorney
Medicaid
Income Tax: Step-Up In Basis
Gift Taxes
Titling Your Assets
Living Trusts
Avoiding Probate Court
Living Will &
Healthcare
Power of Attorney
Organizer of Information, Document Locations, and Funeral Arrangements
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Gifts just prior to death can reduce estate tax. For Federal estate tax, these gifts can be up to $12,000 per donee. The Ohio limit is $10,000 per donee.
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To learn more about
Planning Your Estate
Contact Us to Schedule a Visit
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Who Is Going To Tax The Decedent's Assets?
There is a Federal estate tax and an Ohio estate tax.
Federal: Life Insurance, Pension Plans, IRAs, Stocks, Mutual Funds, Real Estate, Bank Accounts, Personal Property, etc.
Ohio: All the above is taxable, except for life insurance payable to a beneficiary other than the decedent's estate.
There is an unlimited marital deduction for Federal and Ohio, so assets transferring to a spouse are not subject to estate tax. Other deductions include:
- • Decedent's bills due at death
- • Executor fees
- • Attorney fees
- • Costs of administration
- • Funeral bill, cemetery costs, etc.
At the death of the decedent, there may be Federal and/or Ohio estate taxes due. There are different exemption amounts and rates for each.
The Federal applicable exemption amount is:
- • 2006 to 2008 - $2.0 Million
- • 2009 - $3.5 Million
The Ohio applicable exemption amount is $338,333.
Federal: 45% of the amount over $2 million increasing to 46%
Ohio: 6% of the amount between $338,333 and $500,000 and 7% above $500,000
There are a number of planning vehicles for those with potential estate tax liability. For many taxable estates, these vehicles include the use of tax planning trusts (for married couples), gifting, plus an array of other estate tax reduction vehicles. For most clients, their assets are less than the Federal allowable exclusion amount, so the estate tax-planning trusts are not a necessity.
Gifting is a planning device that some use to reduce potential estate tax liability.
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