 |
OHIO ESTATE TAX
RETURN AND
INSTRUCTIONS
For estates with dates of death
Jan. 1, 2002 – Dec. 31, 2012 with a
gross value of more than $338,333.
Department of
Taxation
Ohio
Revised 4/12
|
|
For completing the Ohio Estate Tax Return for estates with dates
of death Jan. 1, 2002 – Dec. 31, 2012,
please review the following:
Read the General Information Section located on pages 6 and 7 for in-
structions.
Complete only the applicable schedules of the return, which are available
through our Web site (tax.ohio.gov) or by contacting the Ohio Department
of Taxation. See pages 4 and 5 for listing of schedules.
Check your computation.
Follow the instructions in the General Information Section, page 6, for
where to file and pay.
Note: Estates with dates of death Jan. 1, 2001 – Dec. 31, 2001 are required to file
an Ohio Estate Tax Form 2, Revised 1/2001.
Estates with dates of death prior to Jan. 1, 2001 are required to file an Ohio
Estate Tax Form 2, Revised 3/00.
For further information, please contact the Estate Tax Unit’s
toll-free information and assistance line
at
1 (800) 977-7711
Ohio Relay Service
( )
1 (800) 750-0750
|
|
Reset Form
Estate Tax Form 2
Ohio Estate Tax Return for all Resident Filings Rev. 4/12
for Dates of Death Jan. 1, 2002 – Dec. 31, 2012
File in Duplicate with the Probate Court
Check one: Taxable Nontaxable
Estate of: Decedent’s last name Decedent’s first name and initial Date of death
Date of birth Cause of death Occupation
Decedent retired Yes No
Address of decedent at time of death (number and street, city, state and ZIP code) Decedent’s social security number
County in Ohio in which probate court located, where will probated or estate administered Case number
Tax Computation
1. Total gross estate (if less than $338,333, return is not required) (from page 2) $
2. Total deductions (from page 2) $ ( )
3. Net taxable estate (line 1 minus line 2) $
4. Tentative tax based on line 3 (use table on page 2) $
5. Less: Estate tax credit $ ( 13,900 )
6. Tax (subtract line 5 from line 4; if line 5 is more than line 4, enter - 0 -) $
7. Less: Previous payments (exclude any interest or penalty paid) $ ( )
8. Balance due (if amount on line 7 is less than tax amount on line 6, enter difference as balance due) $
9. Overpayment (if amount on line 7 is greater than tax amount on line 6, enter difference as a refund) $ ( )
Executor/Administrator Waiver to Receive Correspondence
I/we do not wish to receive further correspondence from the Ohio Department of Taxation regarding this estate, and hereby authorize
all such communication to be directed only to the estate’s legal representative named below.
Signature of executor/administrator
Declaration
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best
of my knowledge and belief, it is true, correct and complete. Declaration of preparer other than the deceased’s personal representative or
person in possession of property is based on all information of which preparer has any knowledge.
Name of attorney representing the estate Address (number and street, city, state and ZIP code) Telephone number
Name of executor/administrator(s) Address (number and street, city, state and ZIP code) Telephone number
Signature of executor/administrator(s) Date Signature of preparer Date
Date Filed with Probate Court Distribution of Subdivision’s Share of Tax Date Received by
(Section 5731.48 and 5731.50 O.R.C.) Ohio Department of Taxation
Percentage City, Village or Township
- 1 -
|
|
Recapitulation of Assets
Value at
Schedule Alternate Value Date of Death
A. Real property ............................................................ $ $
B. Stocks and bonds .....................................................
C. Mortgages, notes and cash ......................................
D. Insurance ..................................................................
E. See Schedule E, Part I .............................................
Joint and Survivorship Property, Part II ......................
F. Other miscellaneous property ...................................
G. Transfers during lifetime ............................................
H. Powers of appointment .............................................
I. Annuities, pensions, retirement plans .......................
Total gross estate (enter on line 1, page 1) ............... $ $
Recapitulation of Deductions
Schedule Amount
J. Debts and administration expenses ................................................................................ $
K. Charitable bequests ........................................................................................................
L. Marital deduction ............................................................................................................
T. Qualified family-owned business interest deduction – REPEALED* .................................
Total deductions (enter on line 2, page 1) ....................................................................... $
Elections by the Executor
Please check the “yes” or “no” box for each question. (See explanation of elections on pages 8 and 9.) Yes No
1. Do you elect alternate valuation? O.R.C. Section 5731.01(A) and (D)..................................................
2. Do you elect qualified farm property valuation? O.R.C. Section 5731.011 ............................................
3. Do you elect to claim a marital deduction for qualified terminable interest property (QTIP)?
O.R.C. Section 5731.15(B)(2) .............................................................................................................
4. Do you elect to claim a deduction for a qualified family-owned business interest?
I O.R.C. Section 5731.20 –REPEALED* ..............................................................................................I
Tax Table
Net Taxable Estate (from line 3, page 1) Tax Rate
More than $338,333, but not more than $500,000 $13,900 + 6% of excess more than $338,333
More than $500,000 $23,600 + 7% of excess more than $500,000
*Not available for estates with a date of death on or after July 1, 2005. See page 9 for a detailed explanation.
- 2 -
|
|
Information
Yes No
1. Did the decedent die testate? ..............................................................................................................
If yes, please attach a copy of the will.
2. During the decedent’s lifetime, were there any trusts created (by the decedent or others for the decedent)? .....
If yes, please attach a copy of the trust.
3. Were any disclaimers filed or elections to take against the will made? ................................................
If yes, please attach copies of the disclaimer or election.
4. Have federal gift tax returns ever been filed? .........................................................................................
If yes, please attach copies of the returns.
5. Was a federal estate tax return required? .............................................................................................
If yes, please attach pages 1, 2 and 3 of Federal Form 706.
6. Did the decedent own any real property? .............................................................................................
If yes, please attach copies of any appraisals.
7. Marital status of the decedent at time of death:
Married
Name of surviving spouse (if applicable)
Social security number of surviving spouse
Single
Legally separated
Divorced
Widowed
Name of deceased spouse
Social Security number of deceased spouse
Date of death of deceased spouse
Case number of deceased spouse’s estate
County of deceased spouse’s estate
Yes No
8. If widow or widower, was a qualified terminable interest property (QTIP) deduction
elected in the predeceased spouse’s estate? .....................................................................................
If yes, please read information below and complete Schedule F.
O.R.C. Section 5731.131 requires the estate to include property in which the decedent had an income interest for life for
which a marital deduction was allowed with respect to the transfer of that property under any of the following:
a. O.R.C. Section 5731.15(A)(1) (for dates of death on or before June 30, 1993)
b. O.R.C. Section 5731.15(B) (for dates of death on or after July 1, 1993)
c. I.R.C. Section 2523(f) (lifetime QTIP gift tax election)
d. Where the decedent’s predeceased spouse was not a resident of the state of Ohio but was permitted a marital
deduction under I.R.C. Section 2056(b)(7).
- 3 -
|
|
Schedules of Assets
Jointly owned property must be listed on Schedule E.
Schedule A – Real Estate
Schedule B – Stocks and Bonds
Schedule C – Mortgages, Notes and Cash
Schedule D – Insurance
Schedule E – Joint and Survivorship Assets (O.R.C. Section 5731.10)
Part I – Interest held by the Decedent and Spouse as the Only Joint Tenants
Schedule E – Joint and Survivorship Assets (O.R.C. Section 5731.10)
Part II – All Other Joint Interests
Schedule F – Miscellaneous Property
Schedule G – Transfers During Decedent’s Life
Schedule H – Powers of Appointment
Schedule I – Annuities, Pensions, Retirement and Other Employer
Death Benefit Plans
- 4 -
|
|
Schedules of Deductions
Schedule J – Debts and Administration Expenses
Schedule K – Charitable Deduction
Schedule L – Marital Deduction Reconciliation
Schedule M – Bequests to Surviving Spouse
Part I – Property Interests which are not subject to a QTIP Election
Schedule M – Bequests to Surviving Spouse
Part II – Property Interests which are subject to a QTIP Election
Please visit our Web site at
tax.ohio.gov
to download these schedules.
- 5 -
|
|
General Information
When an estate tax Estates with a gross value of more than $338,333 are required to file an ET Form 2 and ET
return is required Form 22. Executors and administrators are responsible for filing the estate tax return.
(Section 5731.21)
Returns are not required to be filed for gross estates with a value of $338,333 or less. How-
ever, if the estate consists of real estate and has a value of $338,333 or less, an ET
Form 22 should be filed with probate court to expedite the release of the real estate
lien.
Note: For dates ET Form 22 will become obsolete for dates of death after Dec. 31, 2012.
of death after
Dec. 31, 2012
What estate tax If the date of death is between Jan. 1, 2002 – Dec. 31, 2012, Ohio Estate Tax Form 2,
form is required revised 4/2012, is required to be filed.
to be completed
If the date of death was between Jan. 1, 2001 – Dec. 31, 2001, Ohio Estate Tax Form 2,
(Section 5731.21) revised 1/2001, is required to be filed.
If the date of death was prior to Jan. 1, 2001, Ohio Estate Tax Form 2, revised 3/2000, is
required to be filed.
When and where Returns are required to be filed within nine months from decedent’s date of death (see Exten-
to file (Section 5731.21) sion of Time to File, below). All filings must be made in duplicate with the probate court
where will is probated or estate is administered.
When and where to Tax and interest are paid at the county auditor’s office, with the check drawn to the order of the
pay (tax and interest) county treasurer. Interest begins to accrue at variable rates nine months from decedent’s date
(Section 5731.23) of death. The county auditor will calculate any interest owing.
Extension of time Estates of decedents with a date of death on or after Jan. 1, 2000 are granted an automatic
to file (Section 5731.21) six-month extension, allowing them a total of 15 months to file the estate tax return. Any
additional six-month extensions must be requested in writing directly to the Estate Tax Unit
on ET Form 24 before the due date of the return.
Interest on any estate tax due will be calculated from nine months from date of death
regardless if the estate uses the automatic or additional extensions. To stop the ac-
crual of interest, an estimated payment of tax may be made. (See Estimated Pay-
ments on page 7.)
Extension of time Estates of decedents with a date of death on or after July 24, 1986 may request to extend the
to pay (Section 5731.25) time for payment of tax for undue hardship. Specific examples of undue hardship are listed in
the Ohio Revised Code and include, but are not limited to, the following: (1) insufficient liquid
funds despite efforts to convert assets to cash; (2) a substantial portion of the assets of the
gross estate consisting of rights to receive payments in the future; and (3) the inability to
accurately determine the size of the gross estate because a substantial portion of the
decedent’s assets is subject to litigation.
The estate must request this extension on ET Form 41, no later than forty-five (45) days prior
to the due date of the estate tax return. This form must be filed directly with the Estate Tax
Unit. Additional extensions must be filed not less than thirty (30) days before the expiration of
the previous extension. Each extension is granted for no more than one year per request.
Additional extensions may be granted annually up to a maximum of 14 years. For further
information, please refer to ET Bulletin 3A.
- 6 -
|
|
Estimated payments An estimated payment can be made prior to the filing of the estate tax return, by using an ET
(Section 5731.23) Form 17. This payment will stop the accrual of interest on the amount of tax paid.
Estimated payments are collected in the same manner as stated on page 6 in When and
Where to Pay. If the tax ultimately assessed is more than the estimated payment, interest on
the excess will accrue nine months from decedent’s date of death. If the tax ultimately as-
sessed is less than the estimated payment, the estate may be eligible for a refund.
Penalties Failure to timely file the estate tax return (determined with regard to any approved extension)
(Section 5731.22) results in a penalty assessment.
The penalty is five (5) percent per month or any fraction of a month, not to exceed twenty-five
(25) percent of the tax as finally determined. Interest does not accrue on penalty assess-
ments.
Nonresident estates The estate of a nonresident decedent must file ET Forms 2 and 4 if the decedent owned the
(Section 5731.19) following types of property: real property situated in Ohio; tangible personal property having an
actual situs in Ohio; and intangible personal property employed in carrying on a business
within Ohio (unless exempted under Section 5731.34). The filing requirements are the same
as for a resident decedent, except the return may be filed directly with the county probate
court where the Ohio property is located.
Distribution of tax For dates of death Jan. 1, 2002–Dec. 31, 2012, eighty (80) percent of the tax is distributed to
(Sections 5731.48 and the municipal corporation, village or township in which the tax originates and twenty (20)
5731.50) percent to the state of Ohio.
Marital deduction A marital deduction may be taken for certain property interests that pass from the decedent to
(Section 5731.15) the surviving spouse. Property interests that should be listed include the following: (1) survivor
of tenancy by the entirety or joint tenancy; (2) appointee under decedent’s exercise of a
power; (3) statutory interests passing to a spouse as a result of a right of election to take
against the will; and (4) bequests from decedent pursuant to will.
Property interests that should not be listed include: (1) property that does not pass from
decedent to surviving spouse; (2) qualified terminable interests for which QTIP election is not
made; and (3) property that has been disclaimed by a surviving spouse under O.R.C. Section
1339.68.
Additional tax An additional tax is due when the federal state death tax credit exceeds the Ohio tax paid. If
(Sections 5731.18, an estate (resident or nonresident) falls into the federal estate tax category, ET Forms 3 or 3N
5731.19 and 5731.24) – (Additional Tax Returns) may be required to be filed. The return and payment are due sixty
Repealed* (60) days after the date of the final determination of the federal estate tax liability (closing
letter or equivalent as issued by the IRS). The additional tax shall be paid, without notice or
demand by the tax commissioner, with the return, and shall be filed and paid in the same
manner as the estate tax, except that interest begins to accrue sixty (60) days after the date
of the final determination of the federal estate tax liability.
*Repealed for all estates with a date of death on or after July 1, 2005. See page 9 for
a detailed explanation.
- 7 -
|
|
Explanation of Elections
Alternate Valuation Date (Section 5731.01(A) and (D) O.R.C.)
The gross estate may be valued on the decedent’s date of within one year and nine months from the date of decedent’s
death or on an alternate valuation date. The alternate valuation death or within one year from any extensions granted by the
date is six months from date of death unless the property item tax commissioner. Once made, this election is irrevocable.
is sold, disposed of or distributed within that six months.
If alternate valuation is elected, please list both date of death
The executor must make an election by checking “yes” in the values and alternate values, and the alternate valuation date
Elections Section of the return. This election is mutually ex- on the applicable schedules.
clusive of the federal election. However, it must be elected
Qualified Farm Property Valuation (O.R.C. Section 5731.011)
The estate may elect Qualified Farm Property Valuation for 3. Current Agricultural Use Valuation (CAUV) cards (from
determining the value of farm property as an alternative to its county auditor);
fair market value. To have qualified farm property valued at this
special valuation, certain conditions must be met.* This elec- 4. Fair market value appraisal (broken down into one acre
tion must be made on a timely filed return determined homesite, improvements and bare land only).
with regard to any approved extensions of time to file. If the qualified farm property valuation is elected, use the quali-
To help expedite the audit, please attach the following: fied farm property value column in Schedule A or identify the
qualified property under Schedule E or G.
1. A complete ET Form 34;
2. Most recent county auditor real estate propertyrecord; *Please refer to Estate Tax Bulletin 5.
Qualified Terminable Interest Property (QTIP)
(O.R.C. Section 5731.15)
The Qualified Terminable Interest Property (QTIP) election al- the Elections Section of the return. Once the election is
lows certain life estates held for the surviving spouse to qualify made, it is irrevocable. This election must be made on a
for the marital deduction. timely filed return determined with regard to any approved
extensions of time to file.
The requirements for QTIP are the following:
The executor may make a partial QTIP election only if it is in
1. Surviving spouse must receive all the income for life pay- the form of a fraction or percentage of available QTIP property.
able annually or at more frequent intervals; and The specific interest should be clearly identified as QTIP.
2. No one can have a power to appoint the property to any The surviving spouse’s estate must include all QTIP property
person other than the surviving spouse during surviving claimed in the first spouse’s estate, to the extent not con-
spouse’s life; and sumed or given away, at the value on the date of death of the
3. The executor must make an election by checking “yes” in surviving spouse.
- 8 -
|
|
Explanation of Elections
Qualified Family-Owned Business Interest Deduction
(O.R.C. Section 5731.20) – REPEALED*
Effective for estates of decedents dying on or after Jan. 1, business interest,” “qualified heir,” “member of the family,”
2001, O.R.C. Section 5731.20 allows a deduction for qualified “material participation,” “applicable percentage” and “adjusted
family-owned business interests. For a qualifying estate, the tax difference” will have the same meaning and effect for pur-
maximum deduction allowed cannot exceed $675,000. To poses of Section 5731.20, unless otherwise provided.
claim the deduction, the executor must make a Section 5731.20
election (see page 2, Elections by the Executor, item 4) and For Ohio, if an estate qualifies, the election to claim the de-
attach completed IRS form 706, Schedule T (Qualified Fam- duction can be made even if no federal return is required to be
ily-Owned Business Interest Deduction) and federally requested filed. Where a federal return is required to be filed, the election
statements to the Ohio estate tax return. In addition, each can be made for Ohio, even if not made federally. All qualified
person having an interest in the property must sign a written heirs shall be deemed to have met the Ohio requirement of
agreement consenting to the application of the 10-year addi- consenting to the additional (recapture) tax by signing the
tional (recapture) tax. The deduction for the value of the quali- agreement contained in Federal Form 706, Schedule T. When
fying business interest is claimed under Recapitulation of De- applicable, the tax plus statutory interest will be due no later
ductions, page 2, of the Ohio return. than the first day of the seventh month following the event
causing the imposition of the additional (recapture) tax.
Section 5731.20 incorporates by way of statutory referencing
all dispositive language contained in Section 2057 of the Inter- *Repealed for all estates with a date of death on or after
nal Revenue Code. Every definition and term used in Section July 1, 2005. See below for a detailed explanation.
2057 such as “adjusted value of the qualified family-owned
ET 2006-01 – Estate Tax Unit Information Release – Estate Tax Updates As A
Result Of Amended Substitute House Bill 66 (HB 66) – January 2006
The purpose of this information release (http://tax.ohio.gov/ prospective and applies to decedents dates of death occurring
divisions/communications/information_releases/estate/ on or after July 1, 2005.
ET200601.stm) is to provide a brief summary of significant
estate tax changes resulting from the recent passage of HB In addition to the preceding, uncodified section 557.03 of HB
66. 66 grants a temporary credit to those estates impacted by
the EGTRRA legislation. The amount of additional estate tax
Updated References to the Internal Revenue Code that is due after application of the section 557.03 credit is the
The estate tax, chapter 5731. of the Ohio Revised Code (R.C.), same amount that would be due had the amendments to IRC
has been amended to provide a general definition of the Internal 2011 been incorporated in 2002. This has the effect of
Revenue Code (IRC) for purposes of Ohio’s estate tax law mitigating the excess additional estate tax claim for the
(R.C. 5731.01(F)). This is similar to how the IRC is referenced difference between any pre-EGTRRA and post-EGTRRA
for both Ohio’s personal income tax (R.C. 5747.01), and additional tax assessments.
corporation franchise tax (R.C. 5733.04).
Repeal of Estate Tax Deduction for Qualified
As a result of the amendment to R.C. 5731.18, the Ohio Family-Owned Business Interests
additional tax statute references a more current version of the R.C. 5731.20 previously provided for a maximum deduction
IRC. Because The Economic Growth and Tax Relief not to exceed $675,000 for qualifying family-owned business
Reconciliation Act of 2001 (EGTRRA) totally repealed the interests. Uncodified section 612.24 of HB 66 repeals outright
federal credit allowed for state death taxes (IRC 2011) for the estate tax deduction for qualified family-owned business
dates of death occurring on or after Jan. 1, 2005, the Ohio interests. The repeal is effective for decedents dates of death
Additional Tax is constructively repealed. This change is occurring on or after July 1, 2005.
- 9 -
|
| For further information, please contact the Estate Tax Unit’s Toll-free information and assistance line at 1 (800) 977-7711 or Visit our Web site at tax.ohio.gov |