This article is an extension of the article written by James K. Leonard, Esq., The Leveraged Exclusion Amount: Still the Best Way to Reduce Ohio State Taxes for Married Clients, which was published in the September/October 2003 edition of Probate Law Journal of Ohio (Volume 14, Issue 1). Mr. Leonard's article demonstrated the power of the combined use of the life estate marital deduction, the leveraged exclusion amount, and the unlimited marital deduction, to zero out estate taxes in the estate of the first spouse to pass away.
This article explores a fourth technique, available under certain circumstances to be used in conjunction with the techniques demonstrated in Mr. Leonard's article to further reduce estate taxes. The additional method of reducing estate taxes involves the use of the CAUV election in estates with significant holdings in qualified farm property. The CAUV election is guided by Ohio Revised Code § 5731.011.
Read the full article by Joseph Schroeder: