Estate Planning
Estate & Gift
Tax Planning
Illinois uses a separate $4 million estate-tax exclusion without spousal portability. Review your exposure, compare planning choices, and weigh tax savings against access to assets and other costs.
- $4M Illinois exclusion
- No spousal portability
- Coordinated tax review
- High-net-worth focus
The Illinois problem
Federal exemptions are generous. Illinois isn't.
Work with an attorney on the decisions behind your estimate: ownership, prior gifts, family access to assets and planning for both spouses. Virtual appointments are available throughout Illinois and Missouri.
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.
Use the Lifetime Gifting Explorer to compare proposed gifts, or browse the estate tax planning guides for the facts behind the tools.
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
Planning choices to evaluate
Bypass / credit shelter trusts
May preserve the first spouse's available exclusion. Funding, beneficiary rights, and income-tax basis consequences need a coordinated review.
Lifetime gifting
Compare completed gifts with retaining assets. Taxable gifts still enter part of the Illinois calculation; basis, valuation, and future living needs can change the overall benefit.
Irrevocable trusts
Estate exclusion depends on ownership, retained rights, and transfer history. An irrevocable trust or ILIT does not automatically remove assets from the taxable estate.
QTIP & marital planning
A qualifying trust and timely Illinois election may defer tax. Review beneficiary rights, funding, and inclusion at the surviving spouse’s death.
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?
An unused Illinois exclusion does not automatically pass to the surviving spouse. Credit shelter and QTIP planning serve different purposes; the appropriate structure depends on both spouses' assets, access needs, and tax circumstances.
How do I know if I'm exposed?
Start with the Illinois Estate Tax Calculator using properly determined estate and adjusted-gift figures. The Lifetime Gifting Explorer can then illustrate a proposed gift. A planning review evaluates the assumptions and other strategies.
Discuss the choices behind your estimate
A free 15-minute introductory call to identify your questions and the next steps for an estate-tax planning review.