Illinois Estate Tax Exemption Increases in 2013

 Posted on May 14,2013 in Estate Planning

According to Lexology, the Illinois estate tax exemption increased in 2013. The differences between the Illinois estate tax system and the federal estate and gift tax regime require very specific estate planning for residents of Illinois, as well as anyone who owns real estate in Illinois.

According to Lexology, the major differences between the Illinois estate tax system and the federal estate and gift tax regime are:

• "The Illinois estate and generation-skipping tax exemption is $4 million, while the federal estate and generation-skipping tax exemption is $5.25 million.
• The Illinois estate tax exemption is not indexed for inflation. The federal estate tax exemption, however, is indexed for inflation and has increased about $250,000 since 2011 because of the inflation adjustment.
• Illinois does not impose a gift tax on transfers made during life, but there is a federal gift tax on transfers made during the lifetime.
• The maximum estate tax rate in Illinois in 16 percent, but the federal estate tax rate in 40 percent.
• Illinois does not recognize "portability" for surviving spouses, however, under the federal estate tax system, a surviving spouse does have the option to elect to take advantage of any unused portion of the estate tax exemption of his or her predeceased spouse."

An estate planning attorney in Illinois can help ensure that you understand these differences and how they apply to your situation. If someone does not properly plan, the differences between the Illinois estate tax system and the federal gift and estate tax regime can lead to paying estate taxes that are not necessary.

If you need create an estate plan, or alter the estate plan that you already have, contact Stock, Carlson & Asso. LLC attorneys in DuPage County today. These estate planning attorneys can help you plan your estate properly now.