Preparing your estate in Ohio can feel daunting, especially when you want to make sure your wishes are honored and your loved ones are protected. Many families across Northeast Ohio have questions about estate planning, estate taxes, probate expenses, asset transfers, and how to minimize unnecessary costs. At Van Ness Law, we’re committed to helping you navigate Ohio estate taxes and planning so you can make confident decisions for your family’s future. In this guide, we answer common questions and address crucial steps for effective estate planning in Ohio.

What Are Estate Taxes & How Have Ohio Laws Changed Over Time?

Estate taxes are levied on the transfer of a person’s assets after they pass away, and each state handles this differently. For decades, Ohio imposed an estate tax, which significantly impacted residents’ estate planning strategies. However, this landscape has shifted considerably in recent years: as of January 1, 2013, Ohio repealed its estate tax, eliminating state-level estate tax obligations for deaths occurring on or after that date. This change removed a significant burden for many Ohio residents, allowing for more flexibility in estate planning decisions without the pressing worry of a state estate tax reducing inheritances.

Before 2013, Ohio estate taxes applied to estates exceeding certain thresholds. Families commonly relied on trusts and other legal strategies to minimize exposure, often in coordination with their attorney. The shift to a “no estate tax” environment in Ohio was motivated in part by efforts to retain retirement-age residents and high-net-worth families who might otherwise leave for tax-friendlier states. Understanding this historical context is important for those managing older estates or those who moved between states with different rules. If you are handling an estate for someone who passed away prior to 2013, previous Ohio estate tax liabilities and filing requirements might still apply.

This legislative change has allowed many families in Cuyahoga, Lake, Lorain, Geauga, Portage, and Summit Counties to focus on asset protection strategies that prioritize the people and causes they care about, without the added concern of state-level estate tax erosion. It’s essential to work with a law firm that understands both former and current laws to ensure that historical estate tax issues are resolved while new plans are optimized for today’s regulations.

Does Ohio Assess Any Estate or Inheritance Taxes in 2024?

As of 2024, Ohio does not collect a state estate tax or an inheritance tax. Individuals and families often ask whether any state or county-level “death taxes” could affect their inheritance. The reassuring answer is that, if a decedent passes away in Ohio after January 1, 2013, there is no state-imposed estate or inheritance tax. This favorable environment is particularly beneficial for families seeking to transfer wealth locally, as more assets can pass directly to heirs without state-level reductions.

While Ohio no longer imposes these taxes, it’s important to stay aware of the rules when dealing with multi-state estates. For example, if a loved one owned real estate or other assets in a state that still has an estate or inheritance tax, beneficiaries could face tax obligations in that state. This situation is common along Ohio’s borders, including with Pennsylvania, which maintains an inheritance tax. Navigating these nuances requires thoughtful planning and coordination, often with guidance from a firm familiar with both Ohio’s and neighboring states’ estate laws and tax treatments.

No Ohio counties or municipalities impose their own estate or inheritance taxes. That said, all estates are still subject to other transfer mechanisms, such as probate, which includes court-ordered processes and related administrative expenses. Understanding the distinction between estate taxes, inheritance taxes, and probate costs helps you plan effectively and address your true obligations—avoiding costly assumptions or unanticipated fees for your heirs.

Are Ohio Residents Subject to Federal Estate Tax?

While Ohio residents are not subject to a state estate tax, estates may still owe federal estate taxes, but only if they surpass specific thresholds. As of 2024, the federal estate tax exemption is $12.92 million per individual. This high cutoff means a majority of Ohio estates will not incur federal estate taxes. However, if your estate’s value is near or above this limit—including all real estate, retirement accounts, investments, business interests, and life insurance proceeds—it’s important to plan for potential obligations to the IRS.

The IRS adjusts these exemption amounts periodically, and future federal tax law changes could significantly alter the landscape. For married couples, planning strategies such as portability (transferring any unused exemption from the first spouse to die) can potentially double the threshold, but timely paperwork is critical. Tracking changes to federal law and understanding your complete asset picture are essential to accurately gauge whether you face a federal estate tax risk.

If you believe your estate might approach this limit, start by cataloging all your assets and estimating current and projected values. Assets that may be subject to federal estate tax include:

• Primary residence and other real property
• Bank and investment accounts
• Business holdings and partnership interests
• Life insurance death benefits (if the policy is owned by the estate)
• Personal property and collectibles

At Van Ness Law, we collaborate closely with our clients to create and adjust estate plans that consider both today’s exemption and the possibility of future federal changes.

How Do Probate & Other Ohio Costs Impact Estate Transfer?

Probate is the court-supervised process for transferring a decedent’s assets, paying debts, settling taxes, and distributing inheritances. Even without a state estate tax, probate costs can significantly impact how much of your estate reaches your intended beneficiaries. In Ohio, probate-related expenses may include court filing fees, attorney and executor compensation, appraisal fees, and publication charges for required public legal notices.

Many families aren’t aware of the full range of costs associated with probate in Ohio. These expenses add up quickly, causing stress for loved ones and potentially reducing the resources available to heirs. Common cost components include:

• Court filing fees, which can range from several hundred to over a thousand dollars, depending on the county and the value of the estate
• Attorney fees, often calculated as a percentage of the estate’s value or charged hourly for more complex cases
• Executor or administrator commissions set by Ohio statute, typically a graduated percentage based on the estate’s size
• Professional appraisals for real property, valuable personal assets, or closely held business interests
• Costs for fulfilling public notice requirements in local newspapers

These costs apply to nearly all estates that must pass through probate, regardless of size.

It’s critical to distinguish probate expenses from estate taxes, as they are separate obligations but both affect what your heirs ultimately receive. Good estate planning in Ohio means not only minimizing taxes but also streamlining processes to reduce unnecessary fees and administrative hassles. Our firm helps clients analyze all costs, plan for probate, and identify opportunities to move assets outside of probate where appropriate.

Do Ohio or Local Taxes Influence Estate Transfers, Real Estate, or Capital Gains?

While Ohio residents do not face estate or inheritance taxes, other taxes and local levies can still affect the transfer of assets after death. For instance, annual property taxes continue to accrue on Ohio real estate, and they must be settled out of the estate prior to transfer to heirs. Additionally, if an inherited property is sold, both Ohio and the IRS may assess capital gains taxes on any increases in value from the date of death to the date of sale, due to the establishment of a “step-up” in cost basis for the inherited property.

Beneficiaries who sell inherited real estate should be prepared for potential federal and state capital gains taxes, depending on the holding period and final sale price. Personal property and other tangible assets may trigger similar issues, particularly if they are valuable collectibles or investment-grade items. Other indirect taxes, such as unpaid income taxes owed by the decedent, are also liabilities that must be resolved during estate administration before any distribution can occur.

Multi-state assets introduce further complexity. If your loved one owned property in states like Pennsylvania or New Jersey, those states might impose their own inheritance taxes even if you are a resident of Ohio. We encourage families to conduct a thorough review of all properties, registrations, and account titling to avoid unexpected tax obligations. Our team at Van Ness Law routinely helps clients address both Ohio and out-of-state assets, identifying solutions that reduce complications and help heirs understand their true responsibilities.

What Estate Tax Reduction Strategies Work for High-Value Ohio Estates?

If your total estate value approaches the federal estate tax threshold, the right proactive strategies can help preserve more of your wealth for future generations. Popular methods include lifetime gifting, charitable contributions, and using a variety of trusts to shift assets outside the taxable estate. These strategies require planning, due diligence, and careful adherence to IRS rules to be effective.

Annual exclusion gifts allow you to transfer up to $17,000 (as of 2024) per recipient each year without triggering federal gift tax or reducing your lifetime exemption. Over multiple years, these gifts can move significant assets out of your taxable estate. Similarly, charitable giving strategies—including donor-advised funds or charitable remainder trusts—lower the overall taxable value of your estate while advancing philanthropic goals.

Trust-based solutions, like irrevocable life insurance trusts (ILITs) or grantor retained annuity trusts (GRATs), can remove certain assets from the estate, protecting life insurance proceeds or appreciating property from estate tax calculations. Family business transfers or the use of family limited partnerships can aid in managing succession while reducing taxable estate values. At Van Ness Law, we guide clients through these options, tailoring plans to specific family situations, asset types, and future legacy objectives.

How Can Effective Estate Planning Help Minimize Probate & Preserve Assets?

A thoughtful, up-to-date estate plan is your strongest tool for minimizing both probate costs and legal complications. In Ohio, established legal mechanisms can help your assets pass directly to beneficiaries, avoiding lengthy and expensive court proceedings. Revocable living trusts are a top option for families who want privacy, flexibility, and a smoother transition for heirs. Assets placed in a properly funded trust can be distributed according to your wishes, bypassing probate entirely in most cases.

Asset titling is another major consideration when planning an estate in Ohio. By carefully choosing between joint tenancy with right of survivorship, payable on death (POD), and transfer on death (TOD) designations, you can ensure a seamless transfer of ownership for many types of property and accounts. Here are some practical steps to consider:

• Update beneficiary and POD/TOD designations for all bank, investment, and retirement accounts
• Confirm real estate is titled for survivorship where possible
• Review life insurance ownership and beneficiary status
• Coordinate asset titles so your will and designations don’t conflict

Working with an attorney helps you keep these details current, correct, and aligned with your goals.

Regular reviews—especially after major personal or legal changes—can protect your intentions from changing laws or overlooked details. Our team at Van Ness Law works directly with clients to review existing plans, suggest improvements, and keep documents up to date. We dedicate time to understanding your family’s needs so you can leave a legacy, not legal headaches.

What Deductions & Credits Could Reduce My Federal Estate Tax Liability?

The federal estate tax system provides several deductions and credits that can substantially reduce the taxable value of an estate. The unlimited marital deduction allows you to transfer assets to a surviving spouse without any federal estate tax. This is a crucial component for married couples seeking to maximize combined exemptions. Charitable deductions are available for bequests made to qualifying nonprofit organizations, either through a will or by establishing charitable trusts. For those with philanthropic intent, these provisions support both strategic giving and estate tax reduction.

Other allowed deductions include:

• Administrative costs, such as attorney fees, executor commissions, and appraisal expenses required to administer the estate
• Outstanding debts and claims against the estate, including mortgages and valid loans
• Unpaid personal or property taxes owed by the decedent at the time of death

These deductions are reported on IRS Form 706 if a federal estate tax return is necessary.

Documenting each deduction is vital. Thorough record keeping and prompt filings ensure your estate receives all available credits, minimizing risk of audit or delay. At Van Ness Law, we support clients and fiduciaries by explaining eligible deductions, overseeing compliance, and managing the complex paperwork required by the IRS and other authorities.

What Are the Most Common Estate Planning Mistakes Ohio Families Make?

Many Ohio families fall into the trap of creating a will or trust once and never reviewing it again. Life changes—including marriage, divorce, births, deaths, or new assets—often make old documents incomplete or counterproductive. Unattended estate plans can result in undesired outcomes or court challenges that tie up assets and cause family stress. Consistently reviewing and updating your estate plan ensures it truly reflects your intentions and meets all necessary legal standards.

Overlooking proper asset titling is another frequent issue. If jointly held assets, POD/TOD accounts, and beneficiary designations contradict your will, disputes or forced probate may result. Coordination across all documents and accounts is key to reducing confusion and delay. Additionally, some families underestimate the importance of addressing digital assets, a rapidly growing concern as more accounts hold financial or sentimental value online. Secure passwords, up-to-date access information, and clear digital asset instructions give heirs the tools they need to responsibly handle all types of property.

Finally, misunderstandings about tax exposure—whether from outdated advice or unfamiliarity with current Ohio law—can leave assets unnecessarily vulnerable. Incorrectly assuming a loved one’s estate will face a state death tax or failing to recognize multi-state risks can lead to missed planning opportunities and extra costs. Working with an attorney attentive to both Ohio and federal law helps families avoid these mistakes and protect what matters most.

When Should You Consult a Lawyer for Estate Planning in Ohio?

Deciding when to seek professional help is a critical part of responsible estate planning. If your estate includes significant assets, business interests, out-of-state property, or a blended family, personalized legal guidance can prevent mistakes and promote family harmony. Even for less complex estates, life events such as marriage, divorce, or the birth of a child are important triggers to review and update your plan.

Many Ohio residents assume that online documents or outdated templates will suffice, only to discover problems during probate or upon a loved one’s passing. An attorney’s involvement ensures all documents are tailored, legally compliant, and fully coordinated. At Van Ness Law, every client works with our attorney directly, benefiting from personalized service and local experience built over decades of helping Northeast Ohio families.

Estate planning is never one-size-fits-all, and laws constantly change. By collaborating with a firm that stays current and prioritizes your interests, you reduce stress, avoid pitfalls, and ensure your plan remains effective and enforceable. Even if you already have documents in place, a review can identify gaps and future-proof your wishes.

A Practical Estate Planning Checklist for Ohio Residents

Taking the right steps now can secure your legacy and provide peace of mind for you and your loved ones. Begin your estate planning process with these actions:

• Inventory all assets, including real property, bank and investment accounts, retirement funds, personal property, and digital accounts
• Review and update wills, trusts, and all beneficiary designations
• Confirm asset titling to maximize probate avoidance opportunities
• Gather and organize key paperwork for easy access by your future executor or administrator
• Address digital assets, ensuring your heirs have the access and instructions they’ll need
• Consult with an attorney to address complex issues and verify your plans reflect current Ohio and federal law

A comprehensive, well-maintained estate plan helps you minimize taxes, reduce probate expenses, and safeguard your wishes over time.

If you’re ready to take the next step or have questions about your Ohio estate taxes or planning options, we encourage you to contact Van Ness Law at (440) 650-1787. Our team stands ready to provide attentive, experienced guidance for every stage of your estate planning journey—offering clarity, understanding, and security throughout Northeast Ohio and beyond.