The Illinois estate tax exemption increased to $4 million, with a maximum rate of 16%. There are a number of differences between the Illinois estate tax system and the federal estate and gift tax regime. These differences require proper estate planning for Illinois residents and nonresidents with property in Illinois.
The key differences between the Illinois property for sale tax system and the government property for sale and present tax regime are as follows:
· The Illinois property for sale and generation-skipping tax omission is $4 million, while the government property for sale and generation skipping tax omission is $5.25 million in 2013.
· The Illinois property for sale tax omission is not indexed for rising prices. The government property for sale tax omission is indexed for rising prices and has increased by $250,000 since 2011 due to the rising prices adjustment.
· Illinois does not impose a present tax on transfers made during life; however, there is a government present tax on lifetime transfers.
· The maximum homes for sale tax rate for Illinois is 16%. The government property for sale tax rate is 40%.
· Illinois does not recognize "portability" for remaining spouses. Under the government property for sale tax system, a remaining spouse can elect to take advantage of any unused portion of the property for sale tax omission of his or her predeceased spouse.
Without proper planning, the discrepancies between the Illinois property tax system and the federal gift and property tax regime could result in an Illinois resident, or a nonresident with property located in Illinois, paying unnecessary property taxes.
The key differences between the Illinois property for sale tax system and the government property for sale and present tax regime are as follows:
· The Illinois property for sale and generation-skipping tax omission is $4 million, while the government property for sale and generation skipping tax omission is $5.25 million in 2013.
· The Illinois property for sale tax omission is not indexed for rising prices. The government property for sale tax omission is indexed for rising prices and has increased by $250,000 since 2011 due to the rising prices adjustment.
· Illinois does not impose a present tax on transfers made during life; however, there is a government present tax on lifetime transfers.
· The maximum homes for sale tax rate for Illinois is 16%. The government property for sale tax rate is 40%.
· Illinois does not recognize "portability" for remaining spouses. Under the government property for sale tax system, a remaining spouse can elect to take advantage of any unused portion of the property for sale tax omission of his or her predeceased spouse.
Without proper planning, the discrepancies between the Illinois property tax system and the federal gift and property tax regime could result in an Illinois resident, or a nonresident with property located in Illinois, paying unnecessary property taxes.
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