Losing a loved one brings emotional challenges, and dealing with their estate can feel overwhelming. When you add tax obligations to the mix, the probate process might seem even more daunting.
Many executors worry about handling taxes correctly while managing their grief. Let’s break down the key things you need to know about taxes during probate in Ohio.
Tax responsibilities during probate
The death of a loved one triggers several tax obligations you’ll need to address as an executor. Here are three important taxes involved in probate:
- Estate Tax: Ohio no longer collects state estate tax. However, the federal government still does for estates worth over $13.99 million for 2025.
- Income Tax: As the executor, you’ll need to file a final federal and state income tax return for the deceased person
- Property Tax: Any real estate the deceased owned requires continued property tax payments.
There are other tax obligations that an estate may have, depending on the contents of the estate. For example, if the estate includes a business, you may need to pay for business taxes during probate. Additionally, if the estate beneficiaries live in another state, there may be an inheritance tax involved, even though Ohio doesn’t collect this.
Who pays the taxes during estate administration?
The estate typically pays all tax obligations before distributing assets to beneficiaries. As an executor, you’ll use estate funds to pay any taxes owed. Executors oversee the filing taxes documents and making the payments. You may have to pay penalties personally if you fail to do these on time.
Beneficiaries don’t pay these taxes directly unless the estate runs out of funds. If the estate lacks enough money to cover tax bills, you might need to sell assets to meet these obligations.
Getting help with estate tax matters
Tax obligations are crucial during probate administration, but they don’t need to cause excessive stress. Professional legal guidance can make the process much smoother. Working with a probate attorney can help you catch all tax responsibilities—including any unpaid taxes from previous years.