Illinois Tax Exemption Increases in 2013

 Posted on June 20, 2013 in Estate Planning

According to a report at Mondaq.com, there have been several changes that have been made this year to Illinois legislation when it comes to matters of estate planning. These changes, if not followed can find Illinois residents paying out more than they need to in taxes. These changes were implemented January 1, 2013.

There a a few key changes that make the amounts at the state and federal level differ. The Illinois estate and generation skipping tax exemption amount is now $4 million while the federal amount is $5.25 million. The federal estate tax exemption has been adjusted to deal with inflation and has increased over $200,000 since 2011. The Illinois tax exemption has not been adjusted to deal with inflation at all.

The estate tax rate has been capped both on the state and federal levels. The maximum with the state is 16% while the federal maximum is 40%. These are only a few of the changes. Some of these changes will affect some people and not others, so consult with your DuPage County estate planning lawyer if you have questions about how it will affect you.

However, no matter your financial status, financial and estate planning is very important. If you do not have your final wishes documented on paper, they cannot be properly executed. You may want particular people to receive your property while others will receive financial gifts from you. Whatever the case is, this information needs to be documented. It is the responsible thing to do.

When you are ready to get your will and other estate planning paperwork done, an understanding and knowledgeable DuPage County estate planning lawyer is your perfect ally. Your attorney will ask for a list of your debts and assets. Your attorney can also assist with the best advise to ensure that your surviving family is taken care of.