Illinois is one of the only twelve states (and D.C.) that have passed a state estate tax, which will be assessed to estates worth over $4 million (in contrast to the Federal estate tax exemption of $13.61 million). When drafting your Illinois estate plan, an attorney well-versed in Illinois estate planning can implement strategies to minimize the state’s estate tax burden.
What Type of Property is Included in an Illinois Estate?
Illinois’ estate tax applies to all Illinois residents and to non-residents who own real property in the state. It includes a comprehensive list of properties such as bank and retirement accounts, real estate, personal property, business interests, investments, life insurance policies, and more. The good news is that both spouses are entitled to the $4 million exclusion.