Q: Weren’t estate taxes eliminated in Ohio?
A: While the Ohio estate tax was repealed effective January 1, 2013, a decedent’s estate may have to pay a federal estate tax if the gross estate is more than $5.34 million dollars (“the exempt amount”).
Q: What is the tax rate for estates that exceed the exempt amount?
A: The tax rate is 40 percent. This rate also applies to generation-skipping transfer tax (when, for example, a distribution is made from a grandparent to a grandchild).
Q: Can any tax deductions be taken from the decedent’s gross estate?
A: Yes. Typical deductions include expenses associated with the decedent’s funeral and burial, debts and obligations, gifts to charities and most transfers to the surviving spouse.
Q: Should an estate file a federal estate tax return if all assets are transferred to the surviving spouse?