Federal Estate Tax Update
As previously posted, the new Federal Estate Tax is at 40%. For 2013, the IRS has indexed the estate tax credit at $5.25 million dollars. This means an individual with less than $5.25 million dollars does not have to pay Federal Estate Tax on his or her assets.
The visual summary above gives you a breakdown of Estate Taxes for 2012 and 2013.
There is also a concept known as Portability. Portability allows a husband or wife to transfer upon death his or her unused Tax credit. Effectively, this provides a married couple a $10.5 million dollar tax credit for 2013.
The visual summary above explains the concept of Portability.
Ohio Estate Tax Law Update
For Ohio, the Estate Tax is abolished completely. It is important to note, the Ohio Estate Tax will still apply for those who died in 2012 even if the estate is put through Probate in 2013.
I have provided a visual summary of the Ohio Estate Tax.