Estate Planning
Estate & Gift
Tax Planning
Illinois taxes estates above just $4 million — with no portability between spouses. The good news: most of that exposure is reducible with the right structure in place.
- $4M Illinois exclusion
- No spousal portability
- Reducible with planning
- High-net-worth focus
The Illinois problem
Federal exemptions are generous. Illinois isn't.
The federal estate tax exemption sits in the multi-millions per person, so most families assume estate tax is someone else's problem. Illinois is different: a $4,000,000 exclusion that isn't indexed for inflation and isn't portable between spouses.
Once you add up a home, retirement accounts, life insurance, and any business interest, a family can cross that line faster than expected — and without planning, the first spouse's exclusion can be lost permanently. This is the planning side of the Illinois Estate Tax Calculator.
Missouri residents: Missouri imposes no state estate tax of its own — but if you own Illinois real estate or other Illinois-situated assets, Illinois estate tax can still reach them, and federal exposure applies wherever you live. We plan across both states.
Core strategies
How exposure gets reduced
Bypass / credit shelter trusts
Capture both spouses' $4M exclusions instead of losing the first — often the single biggest lever.
Lifetime gifting
Annual-exclusion gifts, valuation-discounted transfers, and 529 funding move value out of the taxable estate.
Irrevocable trusts
ILITs and other structures remove appreciating assets — and life insurance proceeds — from your estate.
QTIP & marital planning
Illinois QTIP elections defer tax to the second death while preserving control and flexibility.
Common questions
Frequently asked questions
Didn't the federal law change make estate tax planning unnecessary?
Not in Illinois. Federal changes don't touch the Illinois estate tax, which keeps its $4 million per-person exclusion with no portability. For Illinois families, state-level planning is as important as ever.
What does 'no portability' actually cost a married couple?
Without planning, the exclusion of the first spouse to die can be lost. Capturing both spouses' $4 million exclusions — typically through bypass or credit shelter planning — can save several hundred thousand dollars in Illinois estate tax at the second death.
How do I know if I'm exposed?
Start with the free Illinois Estate Tax Calculator to estimate where your estate falls, then a consultation translates that number into a concrete plan. Most exposure is reducible when addressed before death.
See how much of your exposure is reducible
A free 15-minute call to review your estate and the strategies that could lower the tax your family would otherwise pay.