For estate tax planning, the federal tax law change a few years back brought good news for most regular folks. At the end of 2012, the federal transfer tax (which includes the estate tax and gift tax) rules were updated. Specifically, the law increased the amount of the available (gift and estate tax) exemptions, lowered the top rate, indexed the exemptions for inflation, and made the estate tax exemption “portable” to a surviving spouse. In addition, for Ohio residents, the Ohio estate tax was repealed beginning on January 1, 2013.
With the federal estate tax exemption now over $5 million per person (and increasing every year), the vast majority of people no longer need to worry about leakage in their estate plans due to federal estate (or gift) taxes. Similarly, Ohio residents need not worry about the impact of Ohio estate tax anymore. This is all very good news for taxpayers, but it raises a few related points. Continue reading