Final answer:
Ohio does not levy a state inheritance tax, while federal taxes include an estate tax on inheritances over a high threshold, affecting only a small percentage of wealthy estates, and a gift tax to prevent avoidance of estate taxes.
Step-by-step explanation:
The subject at hand concerns the comparison between Ohio state inheritance taxes and federal inheritance taxes, more commonly referred to at the federal level as the estate tax. Ohio does not have a specific state inheritance tax. However, individuals must consider the federal estate tax, which applies to estates exceeding a certain threshold. As of 2015, according to the Center on Budget and Policy Priorities, the federal estate tax only applied to estates of more than $5.43 million. This means that the estate tax primarily affects a small proportion of those with large amounts of wealth. Furthermore, the federal system also includes a gift tax, aimed at preventing wealthy individuals from avoiding estate taxes by transferring their wealth before death.