Ohio capital gains taxes and federal capital gains taxes can cost your heirs a lot of money, stripping down the value of the inheritance you intended to leave behind.

Many people make the mistake of gifting their home or selling it to a family member before they die in an attempt to avoid estate tax on the property. Especially for people with an estate valued at less than $5 million, this is a mistake because no federal estate taxes will be due on an estate of that size. Individuals with an estate worth more than $5 million may avoid some estate tax by giving away or selling the property. However, in either case the family member who receives must pay more in federal and Ohio capital gains taxes if they sell the property, which is likely to be higher than any amount saved by avoiding Ohio estate taxes.