A.H.Steinmetz, Ltd. serves as an estate and gift tax planning attorney for individuals and families throughout Illinois and Missouri, preparing comprehensive strategies to minimize federal and state transfer-tax exposure. Effective tax planning reduces the burden on heirs, preserves family wealth, and ensures assets pass according to the client’s long-term objectives.
A.H.Steinmetz, Ltd. serves clients throughout Monroe, St. Clair, Madison, and surrounding counties in Illinois, as well as St. Louis, Jefferson, St. Charles, and surrounding counties in Missouri. Virtual appointments are available for clients who prefer remote consultation.
Overview of Estate & Gift Tax Planning
Estate and gift tax planning involves strategies designed to:
- Reduce federal estate and gift tax exposure
- Minimize or eliminate Illinois estate tax liability
- Preserve the federal GST tax exemption
- Transfer assets to future generations in a tax-efficient manner
- Utilize lifetime exemption amounts
- Leverage valuation discounts, trusts, and business entities
Advance planning ensures a coordinated transfer strategy that aligns with both state and federal law while preserving family wealth.
Federal Estate and Gift Taxes
The federal estate and gift tax system is unified, meaning lifetime gifts reduce the available exemption for estate tax purposes. Key components include:
- Lifetime Estate and Gift Tax Exemption – Applied to taxable transfers during life or death.
- Annual Exclusion Gifts – Allows gifting within IRS-set limits without using exemption.
- Step-Up in Basis – Assets included in the taxable estate generally receive a basis adjustment at death.
- Portability – Surviving spouses may preserve unused federal exemption (not available for Illinois estate tax purposes).
We advise clients on strategic lifetime transfers to preserve exemption and reduce the taxable estate.
Illinois Estate Tax Considerations
Illinois imposes a state-level estate tax using a modified version of the federal State Death Tax Credit. Through this formula, Illinois creates a $4,000,000 exclusion equivalent per individual. Illinois does not permit portability, meaning a surviving spouse cannot use the predeceased spouse’s unused Illinois exclusion. Without proper planning at the first spouse’s death, the couple’s ability to shelter up to $8 million cumulatively may be permanently lost.
To address these issues, our planning frequently includes:
- Bypass (Credit Shelter) Trusts to preserve each spouse’s Illinois exclusion equivalent
- Disclaimer Trust planning for post-mortem flexibility
- Married-couple tax planning that integrates both Illinois and federal estate-tax considerations
- Asset equalization strategies to ensure proper funding of the bypass structure
- Funding Illinois-exempt subtrusts to prevent erosion of the surviving spouse’s taxable estate
- Coordination with federal portability, which applies only to the federal exclusion—not Illinois
Proper planning can prevent unnecessary Illinois estate tax exposure, often reducing or eliminating six- or seven-figure liabilities.
For an estimated Illinois estate tax calculation, access our Illinois Estate Tax Calculator.
Illinois Estate Tax Considerations
Illinois imposes a state-level estate tax using a modified version of the federal State Death Tax Credit. Through this formula, Illinois creates a $4,000,000 exclusion equivalent per individual. Illinois does not permit portability, meaning a surviving spouse cannot use the predeceased spouse’s unused Illinois exclusion. Without proper planning at the first spouse’s death, the couple’s ability to shelter up to $8 million cumulatively may be permanently lost.
To address these issues, our planning frequently includes:
- Bypass (Credit Shelter) Trusts to preserve each spouse’s Illinois exclusion equivalent
- Disclaimer Trust planning for post-mortem flexibility
- Married-couple tax planning that integrates both Illinois and federal estate-tax considerations
- Asset equalization strategies to ensure proper funding of the bypass structure
- Funding Illinois-exempt subtrusts to prevent erosion of the surviving spouse’s taxable estate
- Coordination with federal portability, which applies only to the federal exclusion—not Illinois
Proper planning can prevent unnecessary Illinois estate tax exposure, often reducing or eliminating six- or seven-figure liabilities.
For an estimated Illinois estate tax calculation, access our Illinois Estate Tax Calculator.
Lifetime Gifting Strategies
Lifetime gifting can significantly reduce estate tax exposure. Common strategies include:
- Annual exclusion gifts
- 529 educational gifts
- Tuition/medical payments made directly to providers
- Gifts of minority interests in family entities
- Lifetime exemption-based gifts
We advise clients regarding tax reporting, basis considerations, and long-term consequences of lifetime transfers.
Valuation Discounts and Entity Planning
Family Limited Partnerships (FLPs) and Family LLCs (FLLCs) can provide:
- Minority-interest discounts
- Lack-of-marketability discounts
- Layered management control
When structured properly, these entities allow clients to transfer significant wealth using less exemption while maintaining long-term control.
Irrevocable Trusts for Tax Planning
Advanced tax-efficient structures include:
- Intentionally Defective Grantor Trusts (IDGTs)
- Spousal Lifetime Access Trusts (SLATs)
- Grantor Retained Annuity Trusts (GRATs)
- Irrevocable Life Insurance Trusts (ILITs)
- Dynasty Trusts
- Charitable Remainder Trusts (CRUTs/CRATs)
- Qualified Personal Residence Trusts (QPRTs)
These tools permit wealth transfer with reduced tax cost, asset protection, and long-term generational planning benefits.
Generation-Skipping Transfer (GST) Tax Planning
GST planning allows assets to bypass intermediate generations, often preserving wealth across multiple generations without repeated estate taxation.
We structure:
- GST-exempt dynasty trusts
- Long-term multigenerational planning
- Allocation of GST exemption
- Coordination with federal and Illinois estate-tax planning
Our Approach
A.H.Steinmetz, Ltd. prepares estate and gift tax plans through a structured and transparent process:
- Initial Consultation – We discuss the client’s goals, family structure, asset composition, and tax-planning objectives. Preliminary planning concepts are reviewed as appropriate.
- Plan Design and Drafting – We design a tax-efficient structure incorporating trusts, gifting strategies, business entities, and charitable opportunities tailored to the client’s circumstances.
- Review and Revision – Clients receive comprehensive drafts with full opportunity for revision and clarification. We provide detailed explanations of tax implications and long-term effects.
- Execution and Implementation – We supervise execution of all documents, assist with entity formation or restructuring, and coordinate trust funding, valuations, and necessary filings.
- Ongoing Support – We remain available for periodic updates as tax laws change, exemption amounts adjust, or family circumstances evolve.
- Pricing and Costs – A.H.Steinmetz, Ltd. offers fixed-fee, retainer, and hourly billing arrangements depending on complexity. For fixed-fee services, payment is not due until execution of the estate-planning or related documents.
Related Services
Estate and Gift Tax Planning frequently intersects with:
Schedule a Consultation
Contact us today or book an appointment to schedule a confidential consultation with a knowledgeable estate and gift tax planning attorney serving Illinois and Missouri. Virtual and in-person appointments are available
