Seniors wanting to ensure their loved ones are cared for and their assets are distributed according to their wishes should look into estate planning. While leaving clear instructions for how you want things addressed once you pass can give you a great deal of peace of mind, estate planning can have unexpected tax implications.
For example, certain strategies such as gifting or creating trusts can inadvertently trigger gift taxes or higher estate taxes. Failure to account for Illinois estate tax laws can also reduce the amount passed on to heirs. To learn more about how taxes could impact what you leave behind and those you leave it for, speak with a knowledgeable Lombard, IL estate planning lawyer.
How Do Federal Estate Taxes Work?
Estates that exceed a certain value are subject to federal estate taxes. As of 2024, that limit is $12.92 million per individual, something most people will not have to worry about. For those whose estate is worth more than that amount, anything exceeding that limit could be taxed at up to 40 percent, significantly reducing the amount that would be left.