The Ohio ET 2 form is the official estate tax return required for estates with dates of death on or after January 1, 2002, that have a gross value exceeding $338,333. This form guides executors through the process of reporting the estate's assets and calculating any tax due. For assistance in completing the form, click the button below to get started.
The Ohio ET 2 form is a crucial document for managing the estate of a deceased individual whose date of death falls on or after January 1, 2002, and whose gross estate exceeds $338,333. This form serves as the official Ohio Estate Tax Return, and it requires careful completion to ensure compliance with state regulations. Executors or administrators must gather relevant information, including the decedent's personal details, the total gross estate, and any applicable deductions. Specific schedules must be filled out based on the estate's unique circumstances, and these can be accessed online or through the Ohio Department of Taxation. It is essential to check all computations thoroughly, as errors can lead to complications. The form also includes a declaration section where the executor or administrator affirms the accuracy of the information provided. Additionally, it allows for the election of certain tax provisions, such as the marital deduction or alternate valuation, which can significantly impact the estate's tax liability. Filing this form accurately and on time is vital for ensuring that the estate is settled in accordance with Ohio law.
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
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)
Signature of executor/administrator(s)
Date
Signature of preparer
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
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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
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
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
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Page 3
Information
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.
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).
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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
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
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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
Part II – Property Interests that are subject to a QTIP election
Please visit our web site at
tax.ohio.gov
to download these schedules.
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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.)
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.
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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.
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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.
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Filling out the Ohio ET 2 form is an essential step for managing estate tax responsibilities for estates with a gross value exceeding $338,333 and dates of death on or after January 1, 2002. After completing the form, it must be filed with the appropriate probate court, and any necessary payments should be made according to the instructions provided. Ensuring accuracy in this process is crucial to avoid delays or complications.
The Ohio ET 2 form is the Ohio Estate Tax Return used for reporting the estate tax for individuals who passed away on or after January 1, 2002, with a gross estate value exceeding $338,333. It is essential for ensuring compliance with Ohio estate tax laws.
Filing is required for estates with a gross value greater than $338,333 and a date of death on or after January 1, 2002. If the gross estate is below this threshold, no return is necessary.
The applicable schedules can be found on the Ohio Department of Taxation's website at tax.ohio.gov. Alternatively, you can contact the Ohio Department of Taxation directly to request these forms.
The gross estate includes various assets such as:
Common deductions include:
The tax is determined based on the net taxable estate, which is calculated by subtracting total deductions from the total gross estate. The tentative tax is then computed using a specific tax table, and any applicable estate tax credits are deducted to arrive at the final tax amount.
The completed form should be filed in duplicate with the Probate Court in the county where the estate is being administered. Be sure to follow the filing instructions provided in the General Information section of the form.
Yes, the executor or administrator can choose not to receive further correspondence by signing the waiver section on the ET 2 form. This allows communication to be directed solely to the estate’s legal representative.
If the estate has a balance due after accounting for any previous payments, this amount must be paid to avoid penalties. If the estate has overpaid, a refund can be requested by entering the overpayment amount on the form.
For assistance, you can call the Estate Tax Division’s toll-free information line at 1 (800) 977-7711. They can provide guidance on completing the form and answering any specific questions you may have.
Incomplete Information: One common mistake is failing to provide all required details. Ensure that you fill in the decedent’s full name, date of death, and social security number. Missing even a single piece of information can delay processing.
Incorrect Schedule Selection: It’s essential to complete only the applicable schedules. Many individuals mistakenly fill out unnecessary schedules, which can complicate the return. Review the list of schedules carefully and choose only those that pertain to your situation.
Calculation Errors: Double-check your math! Many people overlook simple arithmetic mistakes when calculating the total gross estate and deductions. A small error can lead to significant discrepancies in the final tax amount.
Ignoring Filing Instructions: Following the instructions for where to file and pay is crucial. Some individuals neglect to read the General Information section, which can lead to filing in the wrong location or missing deadlines.
Signature Issues: Failing to sign the form is a frequent oversight. Both the executor and any preparer must sign the return. Without these signatures, the form may be considered invalid, causing further delays.
The Ohio ET 2 form is a crucial document for filing estate taxes in Ohio, particularly for estates with a gross value exceeding $338,333 and dates of death on or after January 1, 2002. In addition to the ET 2 form, several other forms and documents may be required to ensure compliance with state laws and regulations. Below is a list of commonly used forms and documents that accompany the Ohio ET 2 form.
Each of these forms and documents plays a significant role in the overall estate tax process in Ohio. It is essential to gather all necessary paperwork to ensure accurate filing and compliance with state and federal regulations.
The Ohio ET 2 form serves as a key document in the estate tax process, and it shares similarities with the Federal Form 706, the United States Estate (and Generation-Skipping Transfer) Tax Return. Both forms are designed to report the value of an estate and calculate the taxes owed. The Federal Form 706 is used for federal estate tax purposes, while the Ohio ET 2 focuses specifically on state-level estate taxes. Each form requires detailed information about the decedent's assets, deductions, and the executor's information. However, the thresholds and tax rates differ significantly between the two, reflecting the distinct tax structures of federal and state governments.
Another document similar to the Ohio ET 2 is the IRS Form 1041, the U.S. Income Tax Return for Estates and Trusts. While the ET 2 deals with estate taxes at the time of a decedent's passing, Form 1041 is concerned with the income generated by the estate after the decedent's death. Both forms require careful accounting of the estate's financial situation, including income and deductions. Executors must complete these forms to ensure compliance with tax obligations, but the focus shifts from estate tax to income tax with Form 1041.
The Ohio ET 2 form also bears resemblance to the state’s Form IT 1040, the Ohio Individual Income Tax Return. While the ET 2 is focused on estate taxes, the IT 1040 is used by individuals to report their personal income. Both forms require individuals to disclose financial information, but the ET 2 pertains specifically to the assets and liabilities of a deceased person, while the IT 1040 is concerned with the income of living individuals. Each form plays a critical role in the broader tax system, ensuring that the appropriate taxes are assessed and collected.
Similar to the Ohio ET 2 is the Federal Form 709, the United States Gift (and Generation-Skipping Transfer) Tax Return. This form is used to report gifts made during a person’s lifetime that exceed the annual exclusion amount. Both forms require detailed documentation of the value of assets, deductions, and potential tax liabilities. While the ET 2 addresses taxes owed upon death, Form 709 focuses on the taxation of wealth transfers during life, highlighting the different stages of tax obligations related to an estate.
The Ohio ET 2 form can also be compared to the Ohio Declaration of Trust, a document that outlines the terms of a trust established by an individual. While the ET 2 deals with the estate tax implications following death, a Declaration of Trust is created during an individual's lifetime to manage their assets. Both documents require the disclosure of assets and may influence tax liabilities, but they serve different purposes within estate planning and management.
Another related document is the Ohio Power of Attorney, which grants authority to another person to act on behalf of the principal. While the ET 2 is filed after death to settle estate taxes, a Power of Attorney is often used during a person’s lifetime to manage their financial affairs. Both documents require clear identification of the parties involved and may have implications for how an estate is managed, but they operate in different contexts—one in life and the other in death.
In addition, the Ohio Will form is similar to the ET 2 form in that both are integral to the estate planning process. A will outlines how an individual's assets will be distributed after death, while the ET 2 calculates the taxes owed on those assets. Both documents must be filed with the probate court and are essential for ensuring that the decedent's wishes are honored and that any tax liabilities are settled appropriately.
Lastly, the Ohio Affidavit of Heirship is another document that shares similarities with the ET 2 form. This affidavit is used to establish the heirs of a deceased person, particularly when there is no will. Both documents are essential for settling an estate and ensuring that the correct individuals receive their rightful inheritance. While the ET 2 focuses on tax obligations, the Affidavit of Heirship plays a critical role in determining who inherits the estate, thus impacting how the estate is administered and taxed.
When filling out the Ohio ET 2 form, it is essential to approach the task with care and attention to detail. Here is a list of things you should and shouldn't do to ensure a smooth process.
By following these guidelines, you can help ensure that the Ohio ET 2 form is filled out correctly and submitted on time. Taking these steps can alleviate some of the stress associated with this process.
Here are some common misconceptions about the Ohio ET 2 form, along with clarifications to help you better understand its purpose and requirements.
Understanding these misconceptions can help ensure that you complete the Ohio ET 2 form accurately and on time. If you have further questions, consider reaching out to the Ohio Department of Taxation for assistance.
When filling out the Ohio ET 2 form, there are several important points to consider to ensure compliance and accuracy. Below are key takeaways:
Understanding these key points can simplify the process of completing the Ohio ET 2 form and help ensure compliance with state regulations.