Only about a third of American adults have an estate plan. While most people understand how important an estate plan is, fewer are willing to confront their own mortality and engage in estate planning. Other reasons given for not having an estate plan include being too busy and being too young – although tragedy can strike at any age.
Among those who do have an estate plan, one area of focus is determining how federal and state estate taxes could impact heirs. Many Illinois families are so focused on federal estate tax planning that they completely overlook the separate – and far more demanding – estate tax system in Illinois. The federal exemption is so high ($13.99 million per individual or $27.98 million for married couples) that most families never owe federal estate taxes.