Confirm the gift history
Earlier gifts and the new gift are separate inputs. A gift can count as taxable even when no gift tax was paid.
Understand adjusted taxable gifts →Illinois estate tax planning · 2026
Lifetime Gifting Explorer
See how a lifetime gift could change the estate you leave and its estimated Illinois tax. Then compare the possible income-tax tradeoff.
← Return to your estate tax estimate
Enter your estate and any earlier adjusted taxable gifts below, then move the slider to explore a proposed gift. This tool estimates changes in Illinois estate tax; it does not calculate federal gift tax.
Explore the tradeoff
What could a lifetime gift change?
Enter your estate’s value before the new gift and any earlier adjusted taxable gifts. Then move the slider, or type a gift amount, to see the estate remaining at death and the estimated Illinois estate tax. For example, a $5 million starting estate minus a $1 million gift leaves $4 million in the estate.
Estate remaining at death
Illinois tax after the gift
Illinois estate tax saved
Does this gift lower the estimated tax bill?
No new giftIllinois estate taxCombined tax with a sale
Horizontal axis: proposed lifetime taxable gift. Vertical axis: estimated tax. Move the slider to compare an amount.
Giving cash? Leave this option off. Giving investments or property that have increased in value? Use it to estimate the recipient’s potential tax if they sell. Start by choosing the gift amount above, then complete both fields below.
%
Tax basis generally starts with what you paid, adjusted for items such as improvements or depreciation. Divide that basis by the gift’s current value, then multiply by 100. Example: $1.2 million basis ÷ $4 million gift × 100 = 30. Enter 30—not 70 for the appreciation.
%
Enter an estimated combined federal and state rate for the recipient. For an illustration, 23.75 means 23.75% of the gain—not of the entire gift. If you do not know the rate, leave this option off or ask your tax adviser.
Moving the slider keeps your basis percentage and tax rate the same. Change these inputs if you switch to a different asset.
Where does the 23.75% example come from?
It combines 15% federal capital-gains tax, 4.95% Illinois income tax, and the 3.8% investment-income tax when applicable. It is an illustration, not a rate selected for you. The recipient’s income, residence, and type of gain can produce a different rate.
Why compare a gift with an inheritance?
A recipient generally takes your tax basis in appreciated property you give them. Inherited property generally receives a basis adjustment to its value at death. Gifting can therefore save estate tax while creating a potential income-tax cost on a later sale. This comparison estimates that tradeoff.
How is this different from the lifetime gift-tax exclusion?
The federal lifetime gift-tax exclusion can shelter a gift from federal gift tax. It does not erase the recipient’s potential tax on a later sale. This tool assumes you have enough federal exclusion left and does not calculate federal gift tax.
The estimate assumes an immediate sale at today’s value. One rate applies to all the gain; actual tax brackets, sale timing, and special property rules can change the result.
3. Compare the saving with the possible cost
We subtract the estimated tax on a sale from the Illinois estate-tax saving. A positive amount is a net tax saving; an amount in parentheses is an additional tax cost. The sale tax is not due simply because you make the gift.
- Estimated extra income tax on the gifted property
- Net tax saving / (additional tax cost)
View the comparison as a table
| New gift | Remaining estate | Illinois tax | Illinois tax saved | Extra income tax* | Net tax saving* |
|---|
*Extra income tax is included only when the basis comparison is selected.
What this comparison assumes
This is a static illustration of one person’s Illinois estate. Values and deductions stay constant; there is no growth, spending, discounting, or change in law between the gift and death. All property has Illinois tax situs. The new gift is fully taxable for gift-reporting purposes, is completed, and is not included in the estate at death. Annual-exclusion gifts, charitable gifts, marital transfers, retained interests, and special inclusion rules require a separate analysis.
It assumes sufficient federal exclusion to avoid federal gift or estate tax and no gift tax paid on earlier transfers. Federal estate tax, gift tax, generation-skipping tax, out-of-state apportionment, and planning costs are not calculated. The graph may extend beyond amounts a person can afford to give away; retaining assets for living expenses and care matters.
The optional basis comparison applies to cash or appreciated property eligible for a basis adjustment if held until death. It does not model retirement accounts, depreciation recapture, losses, special tax rates, sale timing, future appreciation, or exceptions to the usual basis rules. It is a comparison of the taxes shown, not a recommendation to make a gift. A zero tax estimate is not a filing determination.
Review the Illinois Attorney General’s calculator, Illinois instructions, and IRS guidance on basis with your adviser.
Put the comparison in context
Before choosing a gift
Consider the whole estate plan
Ownership, access to assets, and the plan for both spouses’ deaths can matter as much as the tax curve.
Read about married-couple planning →Separate state and federal questions
This comparison assumes no federal gift or estate tax. Confirm that assumption before applying the illustration to a large transfer.
Review federal estate and gift tax limits →Discuss the gift before making it
Bring the comparison, the property’s basis, your earlier gift-tax returns, and your future income needs. A free 15-minute introductory call can help identify the next steps for a fuller planning review.