Know Your Estate Tax Burdens in Illinois

Know Your Estate Tax Burdens in IllinoisWhen you are planning your estate, it is important that you consider the impact the estate tax can have on what you leave your spouse and other beneficiaries, including religious institutions. You will need to consider both the federal and state estate taxes when estate planning in Illinois, though unlike other states there is no additional Illinois state inheritance tax.

Under federal estate laws, you are allowed to use the marital deduction to leave your spouse an unlimited number of assets tax-free. This negates any potential federal gift and estate tax until the death of the surviving spouse.

For those heirs who are not spouses, the 2013 law states you may leave up to $5.25 million without any federal estate tax. You can also leave gifts of up to $14,000 to any person (up to $112,000 maximum) in a single year without reducing that $5.25 million lifetime exclusion.

While the federal exclusions usually mean that your spouse and heirs will not have to pay any federal tax, this is not the case when it comes to state estate taxes. Illinois allows your surviving spouse to inherit tax-free, but the 2014 exemption for other heirs is $4.0 million. Above this, the maximum tax due will be 16 percent of the estate.

If you own property in more than one state, planning your estate can be incredibly difficult. If you are wondering how the estate tax in Illinois may affect what you can leave your heirs, it is important that you have help. Estate planning laws can be confusing and difficult to understand.

Contact one of our experienced and caring Illinois estate planning attorneys today. We will help you minimize your tax burdens so that you may ensure that you can leave a comfortable estate to both your spouse and other surviving heirs.