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Free Ohio Et 2 Template

The Ohio ET 2 form serves as a comprehensive guide and requirement for completing the Ohio estate tax return. It is specifically designed for estates with deceased dates on or after January 1, 2002, and with a gross value exceeding $338,333. This form, complete with instructions and necessary schedules, outlines the precise steps and calculations required to file and remit estate taxes properly in the state of Ohio.

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The intricacies involved in settling an estate in Ohio are encapsulated in the Ohio ET 2 form, a crucial document for executors managing the estate tax obligations for deceased Ohio residents. This form applies specifically to estates where the decedent passed away on or after January 1, 2002, and possesses a gross value exceeding $338,333. It’s a comprehensive guide not just for calculating the estate's tax liability but also serves as an instructional manual detailing which schedules need to be filled, based on the estate’s composition, and outlines proper filing procedures. The form makes clear the differentiation in requirements for estates with different dates of death, highlighting the state's adaptive approach to estate taxation over time. Executors are advised on computation checks, the importance of accuracy in deductions, and the methods for declaring taxable estate values, which are pivotal in determining the estate’s tax due or refund eligible. Moreover, it addresses the need for careful documentation, from waivers for further correspondence to the necessity for declarations under penalties of perjury by the executor and preparer alike. This detailed approach underscores Ohio’s attempt to streamline estate tax filings while ensuring compliance and accuracy in reporting.

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ET 2

Rev. 12/01

OHIO ESTATE TAX

RETURN AND

INSTRUCTIONS

For estates with dates of death on or after

January 1, 2002 with a gross value of more than $338,333.

For completing the Ohio estate tax return for estates with dates of death on or after January 1, 2002, 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 January 1, 2001–December 31, 2001 are re- quired to file an Ohio estate tax form 2, revised 1/2001.

Estates with dates of death prior to January 1, 2001 are required to file an

Ohio estate tax form 2, revised 7/2003.

For further information, please contact the Estate Tax Division’s

toll-free information and assistance line

at

1 (800) 977-7711

(Ohio Relay Service)

1 (800) 750-0750

Ohio Estate Tax Return for all Resident Filings for Dates of Death on or after January 1, 2002

File in duplicate with the Probate Court

Check one:

Taxable

Nontaxable

ET 2

Rev. 12/01

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 where probate court located, 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

$

(

)

 

 

 

 

 

 

 

8.

Balance due(ifamountonline7islessthantaxamountonline6,enterdifferenceasbalancedue)

$

 

 

 

 

 

 

 

 

 

9.

Overpayment (ifamountonline7isgreaterthantaxamountonline6,enterdifferenceasarefund)

$

(

)

 

 

 

 

 

 

 

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

Name of executor/administrator(s)

Address (number and street, city, state and ZIP code)

Telephone

Signature of executor/administrator(s)

Date

Signature of preparer

Date

Date Filed with Probate Court

Distribution of Subdivision’s Share of Tax

(Ohio Revised Code Section 5731.48 and 5731.50)

Percentage

City, Village or Township

 

 

 

 

Date Received by

Ohio Department of Taxation

- 1 -

 

 

 

 

 

 

 

 

 

 

ET 2

 

 

 

 

 

 

 

 

 

 

Rev. 12/01

 

 

 

 

 

 

 

 

 

 

Page 2

Recapitulation of Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule

 

 

 

Alternate Value

 

 

Value at 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deductions (enter on line 2, page 1)

 

 

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Elections by the Executor

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pleasecheckthe“yes”or“no”boxforeachquestion(seeexplanationofelectionsonpages8and9).

 

 

 

Yes

No

 

 

 

 

 

 

 

 

 

 

 

 

1. Do you elect alternate valuation? R.C. section 5731.01(A) and (D)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2. Do you elect qualified farm property valuation? R.C. section 5731.011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3. Do you elect to claim a marital deduction for qualified terminable interest property (QTIP)?

 

 

 

 

 

 

 

 

R.C. section 5731.15(B)(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4. Do you elect to claim a deduction for a qualified family-owned business interest?

 

 

 

 

 

 

 

 

R.C. section 5731.20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Table

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Taxable Estate (from line 3, page 1)

More than $338,333, but not more than $500,000

More than $500,000

Tax Rate

$13,900 + 6% of excess more than $338,333

$23,600 + 7% of excess more than $500,000

- 2 -

ET 2

Rev. 12/01

Page 3

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

8. If widow or widower, was a QTIP deduction elected in the predeceased spouse’s estate? .............................

If yes, please read information below and complete Schedule F.

Yes

No

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. R.C. section 5731.15(A)(1) (for dates of death on or before June 30, 1993) b. R.C. section 5731.15(B) R.C. (for dates of death on or after July 1, 1993)

c. Internal Revenue Code (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 (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 (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 that are not subject to a QTIP election

Schedule M – Bequests to Surviving Spouse

Part II – Property Interests that 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 return is required (R.C. section 5731.21)

Estates with a gross value of more than $338,333 are required to file an estate tax form 2 (revised 12/2001). Executors and administrators are responsible for filing the estate tax re- turn.

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 estate tax form 22 should be filed with probate court to expedite the release of the real estate lien.

What estate tax form is required to be completed (R.C. section 5731.21)

If the date of death was prior to January 1, 2001, Ohio estate tax form 2, revised 3/2000, is required to be filed.

If the date of death was between January 1, 2001-December 31, 2001, Ohio estate tax form 2, revised 1/2001, is required to be filed.

If the date of death is on or after January 1, 2002, Ohio estate tax form 2, revised 12/2001, is required to be filed.

When and where to file (R.C. section 5731.21)

Returns are required to be filed within nine months from decedent’s date of death (see Exten- 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 pay (tax and interest) (R.C. section 5731.23)

Tax and interest are paid at the county auditor’s office, with the check drawn to the order of the county treasurer. Interest begins to accrue at variable rates nine months from decedent’s date of death. The county auditor will calculate any interest owing.

Extension of time

Estates of decedents with a date of death on or after January 1, 2000 are granted an auto-

to file (R.C. section

matic six-month extension, allowing them a total of 15 months to file the estate tax return.

5731.21)

Any additional six-month extensions must be requested in writing directly to the Estate Tax

 

Division on estate tax 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 utilizes the automatic or additional extensions. To stop the

 

accrual 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 (R.C. section

time for payment of tax for undue hardship. Specific examples of undue hardship are listed in

5731.25)

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 the estate tax 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 Division. 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 estate tax Bulletin 3A.

- 6 -

Estimated payments (R.C. section 5731.23)

An estimated payment can be made prior to the filing of the estate tax return, by using an estate tax 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

(R.C. section 5731.22)

Failure to timely file the estate tax return (determined with regard to any approved extension) 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 (R.C. section 5731.19)

The estate of a nonresident decedent must file estate tax forms 2 and 4 if the decedent owned the 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 R.C. 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.

Additional tax

(R.C. sections 5731.18, 5731.19 and 5731.24)

An additional tax is due when the federal state death tax credit exceeds the Ohio tax paid. If an estate (resident or nonresident) falls into the federal estate tax category, estate tax forms 3 or 3N (additional tax returns) may be required to be filed. The return and payment are due sixty (60) days after the date of the final determination of the federal estate tax liability (closing letter or equivalent as issued by the I.R.S.). 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.

Distribution of tax (R.C. sections 5731.48 and 5731.50)

For dates of death on or after January 1, 2002, eighty (80) percent of the tax is distributed to the municipal corporation, village or township in which the tax originates and twenty (20) percent to the state of Ohio.

Marital deduction (R.C. section 5731.15)

A marital deduction may be taken for certain property interests that pass from the decedent to 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 R.C. section 1339.68.

- 7 -

Explanation of Elections

Alternate Valuation Date [R.C. Section 5731.01(A) and (D)]

The gross estate may be valued on the decedent’s date of death or on an alternate valuation date. The alternate valuation date is six months from date of death unless the property item is sold, disposed of or distributed within that six months.

The executor must make an election by checking “yes” in the Elections section of the return. This election is mutually ex- clusive of the federal election. However, it must be elected

within one year and nine months from the date of decedent’s death or within one year from any extensions granted by the tax commissioner. Once made, this election is irrevocable.

If alternate valuation is elected, please list both date of death values and alternate values, and the alternate valuation date on the applicable schedules.

Qualified Farm Property Valuation (R.C. Section 5731.011)

The estate may elect Qualified Farm Property Valuation for determining the value of farm property as an alternative to its fair market value. To have qualified farm property valued at this special valuation, certain conditions must be met.* This elec-

tion must be made on a timely filed return determined with regard to any approved extensions of time to file.

To help expedite the audit, please attach the following:

1.A complete estate tax form 34;

2.Most recent county auditor real estate propertyrecord;

3.Current agricultural use valuation (CAUV) cards (from county auditor);

4.Fair market value appraisal (broken down into one acre homesite, improvements and bare land only).

If the qualified farm property valuation is elected, use the quali- fied farm property value column in Schedule A or identify the qualified property under Schedule E or G.

*Please refer to estate tax Bulletin 5.

Qualified Terminable Interest Property (QTIP)

(R.C. Section 5731.15)

The Qualified Terminable Interest Property (QTIP) election al- lows certain life estates held for the surviving spouse to qualify for the marital deduction.

The requirements for QTIP are the following:

1.Surviving spouse must receive all the income for life pay- able annually or at more frequent intervals; and

2.No one can have a power to appoint the property to any person other than the surviving spouse during surviving spouse’s life; and

3.The executor must make an election by checking “yes” in the Elections section of the return. Once the election is

made, it is irrevocable. This election must be made on a timely filed return determined with regard to any approved extensions of time to file.

The executor may make a partial QTIP election only if it is in the form of a fraction or percentage of available QTIP property. The specific interest should be clearly identified as QTIP.

The surviving spouse’s estate must include all QTIP property claimed in the first spouse’s estate, to the extent not con- sumed or given away, at the value on the date of death of the surviving spouse.

- 8 -

Document Specifications

Fact Number Fact Detail
1 The Ohio Estate Tax Return Form (ET 2) is required for estates with dates of death on or after January 1, 2002, for estates valued over $338,333.
2 Estates with dates of death from January 1, 2001, to December 31, 2001, must file a different version of the Ohio Estate Tax Form 2, revised in January 2001.
3 Estates with dates of death before January 1, 2001, are required to file the Ohio Estate Tax Form 2, revised July 2003.
4 The form and its instructions are available on the Ohio Department of Taxation's website and can be obtained by contacting them directly.
5 Filers must complete applicable schedules listed on pages 4 and 5 of the form and check computations carefully.
6 The form includes provisions for tax computation, including allowable deductions and estate tax credit.
7 Filers have the option to elect alternate valuation methods, as well as other specific elections related to farm property and marital deductions.
8 The form mandates collaboration with the Probate Court in Ohio where the will was probated or the estate administered.
9 Governing laws cited in the form include several sections of the Ohio Revised Code (R.C.), such as R.C. sections 5731.01(A) and (D), 5731.011, 5731.15(B)(2), and 5731.20.
10 Contact information for the Estate Tax Division is provided, including a toll-free information and assistance line.

How to Use Ohio Et 2

After a loved one passes, handling their estate is a necessary step to fulfill their final wishes and distribute their assets according to the law. For estates in Ohio with a date of death on or after January 1, 2002, that have a gross value of more than $338,333, the Ohio Estate Tax Return (ET 2) must be completed and filed. This form ensures that any applicable estate taxes are accurately calculated and paid. The process involves reading instructions, completing schedules, and providing detailed information about the decedent's assets and liabilities. The steps below guide you through completing the ET 2 form. Note that this is a straightforward overview; for more complex estates, consider seeking legal advice.

  1. Begin by reading the General Information section on pages 6 and 7 of the form to understand the filing requirements and instructions.
  2. Gather all necessary documentation, including appraisals, wills, trusts, and records of the decedent's assets and debts.
  3. Identify and complete the applicable schedules from the ET 2 form. These schedules are listed on pages 4 and 5 and can be accessed through the Ohio Department of Taxation website or by contacting the department directly.
  4. Fill in the basic information about the decedent on the main form, including their full name, date of birth, date of death, cause of death, occupation, retirement status, address at the time of death, Social Security number, and the county where the probate court is located.
  5. In the Tax Computation section on page 1, enter the Total gross estate from page 2 on line 1. If the gross estate is less than $338,333, the return is not required.
  6. Calculate and enter the Total deductions on line 2, then subtract this amount from the Total gross estate to find the Net taxable estate on line 3.
  7. Use the Tax Table on page 2 to determine the Tentative tax based on the Net taxable estate and enter this amount on line 4. Then, subtract the Estate tax credit from the Tentative tax to find the Tax amount owing or the Overpayment.
  8. Complete the Executor/Administrator Waiver to Receive Correspondence section if you wish for all communications to be directed to the estate’s legal representative.
  9. Fill in the names, addresses, and telephone numbers of the attorney representing the estate and of the executor/administrator(s). Sign and date the form where required.
  10. Check your computation and ensure all required documents are attached before filing the form with the Probate Court in duplicate.
  11. Follow the instructions in the General Information section for where to file and how to make your payment.

After submitting the ET 2 form, the Probate Court and the Ohio Department of Taxation will review the document. You might receive further communication regarding additional information or corrections. Ensure that all correspondence is addressed promptly to avoid any delays in the processing of the estate tax return.

Crucial Questions on This Form

What is the Ohio ET 2 form?

The Ohio ET 2 form is an estate tax return document that must be filed for estates of individuals who passed away on or after January 1, 2002, and whose gross estate value exceeds $338,333. This form, alongside its instructions, helps in computing taxes owed to the state of Ohio based on the net value of the decedent's estate after allowable deductions.

Who needs to file the Ohio ET 2 form?

Estate representatives of decedents who had their date of death on or after January 1, 2002, and possess a gross estate exceeding the threshold of $338,333 are required to file the Ohio ET 2 form. Estates below this value are not required to file. It is crucial for the executor or administrator to determine the gross estate value accurately to establish the filing obligation.

How can one obtain the schedules mentioned in the Ohio ET 2 form?

The schedules necessary for completing the Ohio ET 2 form can be obtained through the Ohio Department of Taxation's website at tax.ohio.gov. Alternatively, individuals can contact the Ohio Department of Taxation for assistance. These schedules are crucial for accurately reporting various aspects of the estate such as debts, deductions, and assets.

What deductions are allowable on the Ohio ET 2 form?

The form allows various deductions from the gross estate, including debts owed by the decedent, expenses related to the administration of the estate, charitable bequests, marital deductions, and qualified family-owned business interests. These deductions help in determining the net taxable estate, which is the basis for computing the estate tax due.

Where and how is the Ohio ET 2 form filed?

The completed Ohio ET 2 form, along with any applicable schedules and additional documentation, must be filed in duplicate with the Probate Court of the county where the decedent's estate is being administered. The General Information section of the form provides detailed instructions on the filing process, including the location for submission and payment of any taxes due.

Common mistakes

Filling out the Ohio ET 2 form, related to estate tax returns for estates with significant gross values, can be a complex process. It's important to approach this task with attention to detail to avoid common mistakes that could delay processing or affect the tax obligations. Below are ten mistakes frequently made when completing this form:

  1. Not reading the General Information section thoroughly, which can lead to misunderstandings of the requirements and instructions.
  2. Failing to complete only the applicable schedules of the return, leading to unnecessary complications or incorrect filings.
  3. Inaccurate computation of totals and deductions due to rushed or careless arithmetic, affecting the net taxable estate value.
  4. Forgetting to check the tax computation against the provided tax table, resulting in incorrect tax amounts being reported.
  5. Overlooking the need to file in duplicate with the Probate Court, which is essential for the processing of the estate tax return.
  6. Not providing all required attachments, such as a copy of the will, trusts, disclaimers, or federal gift tax returns as applicable.
  7. Misunderstanding the elections by the executor, especially regarding alternate valuation and qualified family-owned business interest deductions, which can significantly affect the tax calculation.
  8. Omitting the signature of executor/administrator and, if applicable, the preparer other than the deceased’s personal representative, which is required to validate the return.
  9. Incorrectly indicating the decedent’s marital status at the time of death and failing to provide necessary information regarding the surviving spouse or QTIP deduction if applicable.
  10. Not contacting the Estate Tax Division for guidance with complex situations or when in doubt about how to complete the form or address specific items.

These mistakes emphasize the importance of a meticulous review process and the potential need for professional advice when dealing with estate taxes in Ohio. Ensuring accuracy on the Ohio ET 2 form not only complies with legal requirements but also properly honors the financial legacy of the deceased.

Documents used along the form

When handling the complexities of estate planning and administration in Ohio, especially with the ET 2 form for Ohio Estate Tax Returns, various other documents and forms often come into play. Understanding the relevance and requirements of each document can provide clarity and ensure compliance during this critical process.

List of Forms and Documents Commonly Used with the Ohio ET 2 Form:
  • Will: The legal document that expresses the deceased’s wishes regarding the distribution of their property and the care of any minor children.
  • Trust Documents: These include any trusts created by or for the decedent during their lifetime, specifying how assets placed into the trust should be managed and distributed.
  • Disclaimer or Election Against the Will: A formal declaration that waives the right to receive property under a will or trust, potentially redirecting assets to other beneficiaries.
  • Federal Gift Tax Returns (Form 709): Required if the decedent made gifts during their lifetime that exceed the annual exclusion amount, impacting the estate's tax obligations.
  • Federal Estate Tax Return (Form 706): This form is necessary for estates that meet the federal estate tax threshold, detailing the estate's assets, deductions, and the amount of estate tax due.
  • Real Property Appraisal: A professional valuation of any real estate owned by the decedent at the time of death, important for accurate tax computation.
  • Death Certificate: A government-issued document confirming the date and cause of death, required for various legal and financial processes following a death.
  • Marital Deduction Documentation: Documents supporting claims for deductions based on marital estate transfers, including Qualified Terminable Interest Property (QTIP).
  • Schedule F - Property Previously Taxed: Required if the estate includes property for which a marital deduction was previously allowed in the estate of a predeceased spouse.
  • Consent to Transfer (Ohio Form ET 12): A release form issued by the Ohio Department of Taxation allowing the executor/administrator to distribute assets from the estate.

Managing an estate, particularly in the face of grief, can be a daunting task. Each document plays a crucial role in navigating the administrative and legal requirements efficiently and effectively. Recognizing the purpose and importance of these forms and documents ensures a smoother process for those tasked with this responsibility. For any uncertainties or complexities, consulting with a legal professional experienced in estate planning and administration is advisable.

Similar forms

The federal estate tax return, often referred to as Form 706, shares a key similarity with the Ohio ET 2 form. Both documents are essential for reporting an individual's estate's value after their passing and calculating the tax due based on that value. Whereas the Ohio ET 2 form is used specifically within the state of Ohio for estates of decedents with death dates on or after January 1, 2002, Form 706 is required by the federal government for all estates that exceed a certain threshold, which is subject to change over time. Both forms require detailed listings of assets, deductions, and applicable credits towards estate taxes.

The gift tax return, or IRS Form 709, also bears resemblance to the Ohio ET 2 form. This document is used for individuals to report transfers of property or money to others that exceed the annual exclusion amount. Similar to the ET 2 form, Form 709 helps calculate the tax due on these transfers, ensuring compliance with tax laws. Both forms play a crucial role in tracking the transfer of wealth, whether through inheritance in the case of the ET 2 form or as gifts during the giver's lifetime with Form 709.

The state inheritance tax returns of states that still impose such taxes have parallels with the Ohio ET 2 form. Like Ohio's estate tax form, these documents entail calculating taxes based on the value of assets received by heirs after someone's death. The key difference lies in the fact that estate taxes are levied on the overall value of the estate before distribution, while inheritance taxes are assessed on the assets received by each beneficiary.

The final individual income tax return, IRS Form 1040, filed on behalf of the deceased, shares a common goal with the Ohio ET 2 form. Both aim to settle the decedent's tax obligations. The ET 2 focuses on the estate's obligations, while the final Form 1040 addresses the decedent's last year of personal income taxes. Both are critical for providing a clear tax status associated with the individual at hand.

Trust income tax returns, IRS Form 1041, relate to the Ohio ET 2 form through their involvement in handling the deceased's assets. While the ET 2 form deals with the estate’s overall tax, Form 1041 is concerned with any income generated by a trust that the decedent had a part in creating. Both entail careful accounting of assets and their growth or diminution.

The Ohio IT 1041 form, the fiduciary income tax return for estates and trusts within Ohio, resembles the ET 2 in purpose and structure, focusing on income rather than the estate's total value. Both forms ensure that either income from or the overall value of an estate or trust is appropriately taxed according to Ohio law, maintaining the state's tax records.

The Application for Tax Clearance Certificate, often a requirement in the estate settlement process, has a practical connection to the ET 2 form. While the ET 2 provides a comprehensive calculation and payment of estate taxes, the Tax Clearance Certificate serves as proof that all tax liabilities, including those reported on the ET 2, have been satisfied for the estate in question.

Form SS-4, the application for an Employer Identification Number (EIN), is pertinent when managing an estate, similar to the ET 2 form's role in estate administration in Ohio. Following a death, an EIN is often necessary for the estate, allowing it to be recognized as a separate taxable entity, much like how the ET 2 form recognizes the estate's tax responsibilities.

The Ohio Real Property Conveyance Fee Statement of Value and Receipt (Form DTE 100(EX)) intersects with the purposes of the ET 2 form in situations involving estate real estate. This document is used to report the transfer of real property and determine the applicable conveyance fee, paralleling how the ET 2 form accounts for real estate within an estate's total value for tax computation.

Last, the Decedent’s Final Medical Expenses form, while not a tax form per se, complements information needed for the ET 2 form by detailing the decedent's last healthcare expenditures. Such expenses can be relevant deductions on the estate tax return, highlighting the interconnectedness of various documents in comprehensively addressing an estate's financial aspects post-mortem.

Dos and Don'ts

When filling out the Ohio ET 2 form, it is essential to ensure accuracy and completeness to avoid unnecessary delays or issues with the Ohio Department of Taxation. Below are lists of things to do and not to do when completing this form for estates with dates of death on or after January 1, 2002.

What to Do:

  1. Before starting, thoroughly read the General Information section on pages 6 and 7 to understand the instructions clearly.

  2. Ensure that you complete only the applicable schedules for the return. The list of schedules is available on pages 4 and 5, on the tax.ohio.gov website, or by contacting the Ohio Department of Taxation directly.

  3. Carefully check your computation for accuracy to ensure that the tax calculation reflects the accurate net taxable estate and applicable deductions.

  4. Refer to the General Information section, specifically page 6, for detailed instructions on where and how to file and pay the estate tax.

  5. Verify all entered information to ensure it is true, correct, and complete to the best of your knowledge and belief.

  6. Attach all required documents, such as a copy of the will, trust documents, federal gift tax returns, or federal estate tax return (form 706), if applicable.

  7. Sign and date the form where indicated, ensuring that both the executor/administrator and the preparer (if different from the executor) sign it.

What Not to Do:

  1. Do not leave applicable fields blank. If a section does not apply, clearly mark it as "N/A" (not applicable) instead of leaving it empty.

  2. Avoid guesswork by not estimating values of assets or deductions. Use exact numbers whenever possible.

  3. Do not file the form without reviewing the tax computation and ensuring that the tax credit and previous payments are accurately applied.

  4. Resist the urge to file the ET 2 form without all necessary attachments. Missing documents can delay processing.

  5. Do not ignore election options such as alternate valuation, qualified farm property valuation, or deductions for qualified terminable interest property (QTIP). Make these selections as applicable.

  6. Avoid sending the form without keeping a copy for your records. Having a copy can be crucial for future reference or in case of discrepancies.

  7. Do not disregard the deadline for filing and payments as indicated by the Ohio Department of Taxation to avoid penalties.

Misconceptions

There are several misconceptions about the Ohio ET 2 form, commonly known as the Ohio Estate Tax Return. Understanding these misconceptions is crucial for accurately completing and submitting this form. Below are five common misunderstandings and their clarifications:

  • Misconception 1: The Ohio ET 2 form is required for all estates. This is not accurate. The ET 2 form is only necessary for estates with dates of death on or after January 1, 2002, and with a gross value of more than $338,333. Estates below this value threshold are not required to file this form.
  • Misconception 2: All schedules must be completed by all estates. Each estate is unique, and only the applicable schedules need to be completed. The necessity to complete a particular schedule depends on the specific assets and liabilities of the estate.
  • Misconception 3: The ET 2 form must be filed with the Ohio Department of Taxation. This misunderstanding overlooks the directive that the completed ET 2 form should be filed in duplicate with the Probate Court in the county where the decedent resided, not directly with the Ohio Department of Taxation.
  • Misconception 4: There is no option to waive further correspondence from the Ohio Department of Taxation. This is incorrect. Executors or administrators can opt not to receive further correspondence regarding the estate by completing the relevant section on the ET 2 form, directing all communication to the estate’s legal representative instead.
  • Misconception 5: The ET 2 form applies to estates of decedents who died before January 1, 2002. The ET 2 revision effective December 2001 is specifically for estates of individuals who passed away on or after January 1, 2002. Estates with dates of death before this require different versions of the Ohio estate tax form.

It's vital for executors, administrators, and legal professionals to fully understand these aspects of the Ohio ET 2 form to ensure compliance with Ohio's estate tax laws and avoid potential issues in the estate administration process.

Key takeaways

When filling out and using the Ohio ET 2 form, it is important to understand several key aspects to ensure accuracy and compliance. Here are five key takeaways:

  • The Ohio ET 2 form is designed for estates of individuals who passed away on or after January 1, 2002, with a gross value exceeding $338,333. It is used to calculate and report the Ohio estate tax due.
  • To complete the form correctly, it is essential to read the General Information section, which provides detailed instructions and can be found on pages 6 and 7 of the form. This section guides through the completion process and helps identify which schedules need to be filled out.
  • It's critical to check all computations carefully. The tax calculation involves several steps, including totaling the gross estate, subtracting allowable deductions, and applying the relevant tax rates and credits to determine the net tax payable or refund due.
  • The form must be filed in duplicate with the Probate Court in the Ohio county where the estate is being administered. The filing requirements, including where exactly to file, are outlined in the General Information section.
  • For any questions or need for clarification, the Estate Tax Division offers a toll-free information and assistance line. Executors, administrators, or their legal representatives are encouraged to contact this line for help with the form.

The Ohio ET 2 form is an essential document for the administration of estates in Ohio, requiring careful attention to detail. Following the instructions carefully and utilizing the available support resources can help ensure that the estate tax is calculated and reported accurately.

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