Many understand the importance of planning their estate. However, you may not be familiar with the estate taxes imposed on a state and federal level. As such, one of the most important things you can do is connect with a Medina, Ohio estate planning lawyer to discuss your legal options during these matters. The following blog explores who is responsible for paying these estate taxes and whether or not it’s possible to reduce or avoid them.
Who Is Responsible for Paying Estate Taxes in Ohio?
When you pass away, understanding what will happen to your assets is critical. Generally, you’ll find that upon your passing, the assets transferred to your Beneficiaries will be taxed on the transfer. It’s imperative to understand that Ohio has eliminated the state tax, but you will still be subject to federal estate taxes.
Typically, assets will be taken directly from your estate or from the Beneficiary who inherits your assets, depending on how you have established the terms and conditions of your Will. As of 2025, the federal exemption is $13,990,000. As such, only estates valued over this amount will have taxes against their assets.
It’s important to understand that there is a difference between estate taxes and inheritance taxes. As the names suggest, estate taxes are imposed on the estate itself, while inheritance taxes are levied against the Beneficiary of the asset.
You should also note that the federal estate tax takes the market value of your assets into consideration. For example, if you purchase a home that decreases in value over time, its current value will be used to determine the tax amount.
Is There Any Way to Avoid These Taxes?
Though it may not seem possible, you can avoid or reduce estate taxes through careful planning with the help of an experienced estate planning attorney. Generally, you’ll find that the most common method used to circumvent the federal estate tax is creating an Irrevocable Trust Fund. This transfers the assets out of your estate and into the name of the Trust. As the assets are no longer considered part of your estate, they cannot be taxed. Additionally, creating an Irrevocable Trust Fund means that your Beneficiaries can receive the assets immediately upon your passing if your estate is planned as such.
Another option can delay your estate taxes. By performing a marital transfer, you can give your spouse the entirety of your estate with no tax implications. However, this does not eliminate or avoid the taxes on your estate, but simply delays them until your spouse’s passing.
As you can see, estate planning can be incredibly complicated, especially when taking taxes into consideration. That is why it’s in your best interest and highly recommended to connect with an experienced estate planning attorney from Krasue Law. Our firm understands that planning for the future can be overwhelming, which is why we are committed to providing you with the best representation possible. Contact us today to learn how we can assist you in these matters.
