Estate planning can be complicated, and so are state inheritance tax laws. Illinois residents and anyone who owns property in Illinois but lives somewhere else need to understand Illinois estate taxes.
1. Illinois Estate Taxes Starts at $4 Million
If you die and your total estate is worth less than $4 million, Illinois won’t collect any estate tax. If the estate is worth more than $4 million, Illinois will collect an estate tax. The estate tax must be paid before money can be distributed to your heirs.
2. Your Estate is Intestate If You Dye Without a Will in Illinois
If you live in Illinois and die without a will, your estate will become intestate. If you die without a will in Illinois, your estate and all decisions about your estate will go to your closest relatives. Your assets that fall under intestacy laws include property, bank accounts and retirement savings that you own outright in only your name, and are not co-owned with anyone else. In this case your estate will go to Probate court and there will be legal and court fees to cover the administration of your estate. This means your heirs will inherit less money – and it will take longer to get it.
3. Illinois Survivorship
Illinois intestate law has a survivorship rule, which means that in order for someone to inherit under Illinois intestate succession law, the heir must survive the decedent by at least 120 hours. In the case of a tragic accident, if you die and your heir dies shortly after your heir’s heirs will not inherit.
Probate and inheritance tax laws are confusing. An experienced estate planning attorney can advise you on the best ways to protect your heirs, and minimize probate costs and estate taxes.
Making a will or trust doesn’t have to be difficult. An experienced estate and probate lawyer can guide you through the process so nothing is overlooked, and you can be sure that your estate plan complies with Illinois probate laws. To talk to a probate, trust and estates attorney, contact the Estate & Probate Legal Group at (630) 800-0112.