The Other Estate Tax: Illinois Estate Tax Issues
On June 27th, 2011, David Lynam presented â€œThe Other Estate Tax: Illinois Estate Tax Issues,â€ at the Illinois CPA Societyâ€™s annual All Tax Committee Meeting in Chicago, Illinois. The presentation discussed the return of the Illinois Estate Tax, recent changes in the tax, and highlighted the important differences between the Federal and Illinois estate taxes.
The presentationâ€™s three main points were:
- The Illinois Estate Tax is back for 2011 and beyond. In addition, while the Federal estate tax now recognizes the portability of exclusion amounts between spouses, Illinois does not. For Illinois Estate Tax purposes, each spouseâ€™s exclusion amount is limited to $2 million, regardless of the exclusion amount used by the first-deceased spouse.
- Old funding formulas in estate plans no longer work the way they were intended, due to the difference between the new Federal and Illinois exclusion amounts.
- Illinois Estate Tax Returns, IL Form 700, are required for all estates of over $2 million. In addition, if an Illinois return is required, a Federal Estate Tax Return, Form 706, must also be prepared. This is so even when no Federal Estate Tax is due.
If you would like any further information or have questions relating to estate planning, estate taxes, or any other related matter, feel free to contact Lynam & Associates.