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Illinois To Increase Its Estate Tax in 2009

In 2009, when the federal applicable exclusion amount increases from $2 million to $3.5 million, Illinois will retain the $2 million exemption for Illinois estate tax purposes.  This is referred to as “decoupling.”  In other words, the increase in the exemption for federal law will not apply to Illinois residents.  Anyone in the State of Illinois who has drafted an revocable living trust and who has a taxable estate in excess of $2 million, needs to revise their trust.  Failure to do so can actually increase the amount of taxes that will be paid as of the date of an Illinois resident’s death.  If you are an Illinois resident and you have a taxable estate, be aware that your estate plan is in dire need of an amendment.  Feel free to call us.  We can help.