DGAA bLAWg

How Does Illinois Estate Tax Differ From Federal Estate Tax?

Web Admin - Tuesday, April 10, 2018
Palatine estate tax attorneyNo matter the amount of property or assets you acquire over the course of your lifetime, you will want to be sure that these assets are properly distributed to your heirs following your death. Proper estate planning is essential for making sure your wishes are carried out correctly. However, one aspect of estate planning that is often not addressed is the estate tax, which applies to the transfer of a person’s assets to their heirs after their death, and residents of Illinois should be aware that they may be responsible for a state estate tax as well as a federal estate tax.

Understanding Illinois Estate Tax

When someone dies, their estate may be subject to estate tax if the value of their assets is above a certain threshold. The Tax Cuts and Jobs Act of 2017 increased the threshold for federal estate tax from $5.49 million to $11.2 million. The exemption threshold for Illinois estate tax is currently $4 million. Any estate with a gross value that is more than this amount is subject to Illinois estate tax, with the full value of the estate being taxable.

The tax rates for the Illinois estate tax are variable, ranging from 0.8% to 16%. This tax applies not only to the value of an estate, but also to taxable gifts made during a person’s lifetime. A person may be able to reduce the value of their estate, and thus reduce their amount of estate taxes, by making non-taxable gifts of up to $14,000 per person per year.

Unlike the federal estate tax, the Illinois estate tax exemption cannot be passed to a person’s spouse after their death. However, some of the Illinois estate tax may be deferred if a spouse’s assets are placed in a qualified terminable interest property (QTIP) trust. This type of “credit shelter” trust can be used to defer the difference between the Illinois and federal estate taxes. For example, in estate tax returns filed for decedents who died in 2017, a QTIP election of up to $1.49 million may be made, and estate taxes on this amount will not apply until the death of the surviving spouse.

Contact an Arlington Heights Estate Planning Attorney

Understanding the relationship between federal and state estate taxes and determining how to manage assets in a way that minimizes tax burdens can be a complicated matter. If you want to be sure that you will be able to pass the assets you have earned throughout your lifetime to your heirs, the skilled attorneys of Drost, Gilbert, Andrew & Apicella, LLC can help you create an estate plan that meets your family’s needs. Contact our Schaumburg estate tax lawyers today at 847-934-6000 to schedule a personalized consultation.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.



Sources:
http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=609&ChapterID=8
http://illinoisattorneygeneral.gov/publications/pdf/Instruction_FactSheet2017.pdf
https://www.thebalance.com/overview-of-illinois-estate-tax-laws-3505297


Recent Posts


Tags

Palatine personal injury lawyer mass shooting BAIID estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, Arlington Heights injury attorney Palatine probate lawyer Arlington Heights TBI attorney Rolling Meadows traffic attorney icy parking lots Chicago employment lawyer South Barrington real estate lawyer Illinois employment law attorneys manufacturing personal injury Crystal Lake law firm contracts Illinois wills and trusts attorneys senior citizens Deer Park real estate law firm BAC Illinois Wage Payment and Collection Act comparative negligence Rolling Meadows criminal attorney Illinois boating accident lawyer Rolling Meadows tax attorney Palatine elder law attorney overtime pay bicycle dooring accidents distracted driving accident victims GM ignition switches Schaumburg Arlington Heights real estate lawyer business litigation Buffalo Grove employment lawyer Chicago estate planning lawyer digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers Schaumburg insurance lawyers trucking accident lawyers natural gas explosion probate claims Crystal Lake accident attorney Illinois insurance claim attorney compensatory time Deer Park criminal attorney Illinois employment laws Rolling Meadows boating crash lawyer Rolling Meadows DUI lawyer DGAA rest breaks pay when paid contract Illinois red light cameras employee discrimination Rolling Meadows insurance dispute lawyers Inverness elder law lawyer Crystal Lake employment lawyer Des Plaines medical malpractice attorney motorcycle accident Palatine estate planning lawyer eluding a police officer Illinois traffic accident lawyer Arlington Heights pedestrian accidents car accident lawyers mortgage Arlington Heights trucking lawyer Rolling Meadows probate lawyer insurance attorney real estate attorney Schaumburg real estate lawyer Forcible Entry personal injury claim Schaumburg criminal law attorney Des Plaines insurance attorney Des Plaines collections attorney Schaumburg drug defense lawyer criminal law insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys Crystal Lake will lawyer Inverness accident lawyer Barrington Illinois estate planning lawyer Fair Labor Standards Act Legal Info Crystal Lake traffic attorney Palatine Attorney slip and fall accidents Long Grove wills and trusts attorneys Illinois insurance claim dispute lawyers traffic violations workers comp Arlington Heights lawyer Chicago corporate attorney real estate lawyer cell phone creditors residential real estate cell phone tower data dram shop law work unions drug crimes Rolling Meadows estate planning attorney bad faith insurance claims Deer Park personal injury lawyer federal crimes irrevocable trust Illinois insurance attorney spinal cord injuries slip and fall personal injury attorney boating DUI murder defense Transfer on Death Instrument disability benefits life insurance lawyer Crystal Lake employment law attorney insurance denial appeals Deer Park traffic lawyer rollover accidents Illinois mortgages Des Plaines civil attorney Illinois trucking safety Rolling Meadows personal injury lawyer medical research Illinois personal injury attorney wrongful death wills and trusts murder charges jet ski accidents Inverness traffic law firm breathalyzer test Palatine employment lawyer Illinois insurance disputes trauma after an accident Deer Park accident attorney insurance negligence fiduciary rule delay Inverness probate lawyer Long Grove estate planning attorney Crystal Lake civil litigation lawyer low-ball insurance settlement Long Grove real estate lawyer Deer Park workers compensation lawyer insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys Arlington Heights wills and trusts lawyers car collision liability claims insurance claim denials traffic laws foreclosure Inverness real estate attorney Rolling Meadows employment law attorney Illinois traffic attorneys Illinois pet lawyer Illinois jet ski accident lawyer modern family estate planning Crystal Lake pet attorney guardianship attorney Crystal Lake personal injury lawyer insurance dispute Illinois traffic laws pet law ACA Illinois personal injury Des Plaines motorcycle accident attorney Barrington personal injury lawyer fault based insurance wrongful termination Chicago insurance claim attorneys Crystal Lake criminal defense attorney probate process commercial leases llinois Real Estate Lawyers Association Crystal Lake personal injury attorney accidental death benefits personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys Arlington Heights personal injury attorney fiduciary rule Arlington Heights criminal lawyer Arlington Heights insurance attorney unauthorized overtime Arlington Heights car accident lawyer estate planning attorney Illinois business law atorneys Illinois estate planning Barrington personal injury attorney drug crime healthcare claims Crystal Lake pedestrian accident lawyer Illinois Transfer on Death Instrument Arlington Heights car crash attorneys Policy Cancellation Inverness personal injury attorney criminal Illinois criminal defense attorney vacation home digital media accounts, estate planning, Arlington Heights estate planning attorney, BUI back injuries medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers condo association employees Arlington Heights medical malpractice lawyer fatal car accidents Palatine drug lawyer estate planning surgical mistakes Rolling Meadows medical malpractice lawyers nursing home negligence pizza emoji civil litigation FMLA Schaumburg corporate attorney denied insurance claim job lawyers crossover accidents appealing an insurance claim Des Plaines DUI attorney insurance claim dispute attorney comp time bike accident Schaumburg construction accident lawyer Arlington Heights wills and trusts lawyer Palatine employment attorney Attorney Ken Apicella anesthesia errors Thanksgiving marijuana criminal defense Barrington drug crime attorney Food and Drug Administration's Food Safety Modernization Act texting while driving Chicago traffic lawyer spinal cord injury Illinois Smoke Detector Act Buffalo Grove law firm Crystal Lake injury attorney uninsured motorist Barrington workers compensation attorney forming a corporation in Illinois Illinois will lawyer pedestrian-automobile accident Palatine workers compensation lawyer internet Arlington Heights wills and trusts attorneys traumatic brain injuries Class A misdemeanor wills Barrington medical malpractice lawyers gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys Deer Park employment law attorney consent to a search Rolling Meadows personal injury attorney construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation Illinois medical malpractice case controlled substance social media after death caretaker rights Chicago estate planning no contest clauses Illinois workplace discrimination attorney Palatine employment law lawyer hit and run accident Long Grove real estate attorney pet bites living wills Barrington attorney Illinois personal injury lawyer brain injury Schaumburg personal injury lawyers Illinois Workers’ Compensation Commission Barrington estate planning attorney Buffalo Grove traffic attorney motorcycle accident lawyer Crystal Lake medical malpractice law firm distracted driving accidents preventing accidents digital evidence Rolling Meadows Traffic Lawyer Des Plaines personal injury attorney Illinois workers compensation attorney unpaid assessment digital information probate Crystal Lake bike accident lawyer traffic violations defense Federal Food Drug and Cosmetic Act hands free device Riverwoods estate planning lawyer trench injuries Palatine trusts lawyer insurance claims liens Crystal Lake tax lawyer Rolling Meadows criminal lawyer pedestrian accident life insurance driving advance healthcare directive Crystal Lake medical malpractice attorneys Crystal Lake car accident attorney Illinois employment law attorney medical marijuana real estate attorneys wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace drunk driving statistics license Detainer Actions car accidents Inverness real estate lawyer paid sick leave pedestrian injuries, pedestrian fatality corporate law landlord tenant law Illinois lawyer operating agreements traffic deaths Rolling Meadows personal injury lawyers Barrington business law firm Deer Park DUI lawyer DUI attorney Rolling Meadows traffic law firm investment property meal breaks Rolling Meadows Attorney rollover car crashes Chicago will attorney, social media platforms, Illinois estate planning lawyer, employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys Schaumburg probate attorney rumble strips DMV defective products deadly crashes civil rights violation reckless homicide Palatine business attorney subcontractor medication errors trusts liability Home Sale Contingencies caregiver IRA benefits Deer Park motorcycle accident lawyer insurance agent negligence life insurance policy Home Remodeling Repair Act employment law, Illinois employment laws Illinois injury lawyer Barrington Traffic Lawyer traffic offenses Illinois law personal injury lawyer Buffalo Grove medical malpractice lawyers construction accidents living trust Fourth of July personal injury claims Illinois insurance claim dispute lawyer Rolling Meadows car accident lawyers Illinois registered agent right to work Illinois defective products attorney Arlington Heights traffic attorney Schaumburg civil litigation attorney pregnant women Des Plaines Traffic Lawyer Illinois probate lawyer Crystal Lake estate planning lawyer products liability Palatine punch death insurance denials product liability sexual harassment PTSD Arlington Heights wills and trusts attorney Barrington employment law attorney drugs Schaumburg elder law lawyer employee rights estate planning for college students employment law field sobriety test marijuana crimes attorney severance agreements Arlington Heights Traffic Lawyer School Visitation Rights Act pedestrian accidents Palatine traffic accidents Jay Andrew car accident lawyer Des Plaines drug lawyer car crashes Illinois attorney Illinois Human Rights Act Barrington estate planning lawyer Rolling Meadows accident lawyer Des Plaines tax law firm new real estate form license reinstatement Chicago employment attorney trust payments Palatine civil litigation lawyer Barrington injury attorney living trust vs will insurance dispute attorney estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers preventable medical errors Illinois job attorney privacy DNR workers compensation benefits Whistleblower Claims Illinois employment law Illinois rollover accident lawyers independent contractor car crash Inverness injury lawyer Kenilworth estate planning attorney Super Mario Arlington Heights personal injury lawyer Mt Prospect Attorney Kenilworth estate planning lawyer Buffalo Grove personal injury lawyer Illinois speeding lawyer Illinois employment lawyer Barrington criminal lawyer Rolling Meadows litigation lawyer insurance claim dispute Rolling Meadows employment law attorneys Illinois workplace lawyer Barrington employment law firm speeding homestead rights Affordable Care Act Rolling Meadows employment attorney real estate closing construction contracts Schaumburg car accident attorney gift taxes cell phone accidents Mount Prospect real estate lawyer Illinois living will deed transfer Illinois workers compensation lawyer DUI penalities Colin H. Gilbert license suspension traffic crimes traumatic brain injury Des Plaines accident attorney Palatine real estate lawyer boating under the influence Illinois driving without license murder medical malpractice claims denial of life insurance elder law foreclosed rental property jet ski wage theft Schaumburg Attorney Illinois DUI attorney LLCs Kenilworth estate planning attorneys involuntary manslaughter taxes Palatine construction attorney clemency personal injury law firm Illinois traffic attorney commercial leasing in terrorem provision Illinois trusts attorney living trust benefits Illinois motorcycle accident lawyer Long Grove estate planning attorneys DUI defense home inspection lawyer blood alcohol content Family Medical Leave Act auto accidents Barrington criminal defense lawyer Arlington Heights tax lawyer probate fees Illinois collections attorney Schaumburg employment law attorneys real estate first degree murder Illinois insurance lawyer vacation home fines Buffalo Grove corporate attorney workers compensation Rolling Meadows real estate attorney suspended license agent startup company healthcare Illinois home inspection Deer Park traffic accident attorney head on collisions Joliet general practice lawyers Des Plaines injury law firm Inverness estate planning lawyer employee misclassification Exclusions real estate zoning denied insurance claims TBI Des Plaines criminal attorney Chicago lawyer Illinois medical malpractice lawyers premises liability Arlington Heights employment law attorneys Buffalo Grove injury lawyer employment attorney Illinois business lawyer Schaumburg criminal attorney installment contracts Barrington litigation attorney Rolling Meadows real estate contract Des Plaines drug crimes lawyer Des Plaines Palatine law firm defective products lawyer insurance claim special needs trust DUI Palatine corporate law attorneys Illinois insurance claims lawyers Illinois estate planning attorney tax attorney Chicago insurance law firm Rolling Meadows marijuana attorney whistleblower protections overtime violations Des Plaines personal injury lawyers ken apicella holiday statistics Barrington employment attorney child safety Des Plaines real estate lawyer automated cars employment contract estate planning trusts Inverness insurance attorney Illinois LLC creation Schaumburg wrongful death attorney Buffalo Grove criminal defense lawyer texting and driving Illinois traffic ticket lawyer Employment Discrimination Law Crystal Lake traffic lawyer pain and suffering traffic tickets Crystal Lake business law attorneys Buffalo Grove car accident lawyer Self-Directed IRA Accounts insurance disputes changes to mortgage law financial advisors breach of contract trucking accidents Schaumburg personal injury attorney insurance claim delay dog bites Illinois employment law firm commercial real estate drunk driving probate claims process Crystal Lake car accident lawyer POA Crystal Lake employment attorney Illinois estate planning law firm Arlington Heights Attorney Landlord Tenant Ordinance Schaumburg estate planning attorney dealing with problem employees expungement Rolling Meadows corporate lawyer Illinois wrongful termination lawyer Rolling Meadows insurance lawyer Des Plaines personal injury lawyer boating accidents Des Plaines real estate attorney Barrington real estate lawyer sexual images Chicago will attorney Palatine injury attorney Liquor Control Act Illinois civil litigation lawyer Illinois Illinois tax attorney loopholes filing a medical malpractice claim Illinois Sales Representative Act underfunded trust Mount Prospect elder law attorney condo hiring employees college kids employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, Crystal Lake medical malpractice lawyer medical malpractice criminal record Chicago biking tips Illinois corporate lawyer Rolling Meadows insurance attorney Chicago trucking accident attorney Long Grove estate planning Illinois medical malpractice claim Palatine insurance lawyer landlord Palatine criminal defense lawyer Arlington Heights employment attorney car accident Buffalo Grove probate lawyer IRELA privacy laws truck collisions attorney fees Barrington civil litigation attorney Chicago car accident lawyer South Barrington real estate attorney federal regulations for LLCs blended families dynasty trusts rent to own real estate contracts Illinois car accident attorney unpaid overtime Inverness corporate attorney Rolling Meadows insurance dispute lawyers, insurance dispute Illinois employee rights attorney. Illinois elder law attorney revenge porn Buffalo Grove traffic lawyers Schaumburg estate planning lawyer health insurance dispute estate plan institutional trustee drug possession Schaumburg employment attorney Crystal Lake insurance lawyer probate lawyer swimming pools real estate leasing Inverness civil lawyer power of attorney for healthcare Chicago attorney Arlington Heights accident attorney Illinois personal injury lawyers food poisoning digital assets Des Plaines pet law attorney workplace sexual harassment power of attorney Schaumburg injury lawyer Illinois pedestrian accident attorney estate attorney Palatine traffic lawyer Illinois bicycle safety Do Not Resuscitate loss of consortium problem employees insurance adjusters Retaliatory Discharge Arlington Heights estate planning attorney Colin Gilbert Mount Prospect wills and trusts lawyers Deer Park medical malpractice attorney Rolling Meadows drug defense attorney income distribution deducation Schaumburg traffic lawyer owner responsibility ObamaCare Illinois insurance dispute lawyers minimum wage IRA trust transfer Buffalo Grove personal injury attorney Illinois employment attorneys estate tax employment lawyer Illinois real estate lawyer capital gains tax Illinois real estate FSLA traffic accidents natural gas Palatine civil attorney drug crimes lawyer estate planning lawyer Rolling Meadows business lawyer Barrington boating accident attorney bicycle accidents trustee medical malpractice compensation license revocation Illinois construction accident attorney Buffalo Grove insurance claim dispute lawyers small business underage DUI unfunded trust Illinois Probate Act of 1975 underinsured motorist Schaumburg personal injury lawyer Illinois medical malpractice attorney personal injury accidents Schaumburg estate attorney Illinois wills and trusts car crash injuries IRS Illinois small business Buffalo Grove real estate attorney Palatine corporate attorney life insurance claims golf accidents insurance claim denial sole proprietorship Inverness DUI lawyer elder abuse insurance agents Des Plaines claims law firm Schaumburg medical malpractice lawyer CAM Crystal lake insurance dispute attorney civil litigation attorney

Archive