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Estate Planning Areas

Estate Tax

What is the Estate Tax?

Some estates may be subject to a litany of taxes. Estates can be taxed by the State, the Federal Government, and then the income an estate generates is subject to estate income tax. But how does it all work? In the most simplified terms possible, estates are generally not subject to estate taxes, unless the estate’s value hits a threshold amount.

 

When does the Estate Tax Apply?

The threshold amount for estate taxes varies depending upon what year it is and the taxing jurisdiction in which the estate is located. In Ohio, any estate valued greater than $338,333 is subject to the Ohio Estate Tax. The tax starts as a 6% tax and then rises to 7% if the estate is valued at more than $500,000.

 

Recent legislation has eliminated the Ohio Estate Tax beginning January 1, 2013. For more information on this legislation, see this article.

 

The Federal Estate Tax changes from year to year. Below is a chart of what the Federal Estate Tax has been dating back to 2001:

 


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