Ohio Estate Taxes

The basic Ohio estate tax is imposed on the value of a resident decedent's gross estate, minus deductions and any exemptions. The tax is also imposed on nonresident estates with real and tangible personal property located in Ohio.

Ohio also imposes an additional estate tax designed to absorb the federal estate tax credit for state death taxes. No additional estate tax is imposed.

Deductions. The following items can be deducted from a decedent's estate when calculating Ohio estate tax liability:

• marital deduction (i.e., value of items passing to a surviving spouse)
• claims against the estate (unpaid at the time of decedent's death)
• funeral expenses
• administration expenses
• expenses in administering nonprobate property which is included in the gross estate if paid before the time for the tax liability has expired
• unpaid mortgage or other indebtedness against property included in the estate
• charitable contributions
• decedent's qualified interest in a family-owned business

Returns. For deaths occurring in 2002 and beyond, the personal representative of an estate with a value over $338,333 must file an Ohio estate tax return within nine months of the decedent's death. However, an automatic six-month filing extension is available to all estates. Any tax payments owed must be paid within nine months of the decedent's death, regardless of any filing extensions.

An Ohio estate tax return is filed with the probate court administering the estate, the probate court of the county in which decedent died a resident (if no administration), or the probate court in the county in which the property subject to tax is located (for nonresidents). The court will forward the return to the Ohio Tax Commissioner. Any Ohio estate taxes owed must be paid within the same nine-month period.

Generation-skipping transfer tax. Ohio imposes a generation-skipping transfer tax that is equal to the federal credit.