Tuesday, December 27, 2011

On December 16,  the Governor of Illinois, Pat Quinn, signed into law a bill that, among other things, raises the Illinois estate tax exclusion amount, raising the amount that an Illinois resident can transfer at death without the imposition of Illinois estate tax.

Under current law, an Illinois resident has an estate tax exclusion amount of $2,000,000 for purposes of the Illinois estate tax.  Under the new law, the $2,000,000 exclusion amount remains in effect for decedents dying prior to January 1, 2012.  Those dying on or after January 1, 2012, and prior to January 1, 2013, will have an Illinois estate tax exclusion amount of $3,500,000.  Those dying on or after January 1, 2013 will have an Illinois estate tax exclusion amount of $4,000,000.

While the increased Illinois exclusion still does not match the federal estate tax exclusion amount, as many other states do, it does reduce the amount of state estate tax payable by Illinois estates.

Leave a Reply


9 × = eighteen