Estate planning laws are changing in meaningful ways for 2026 – and while some of these updates create new opportunities, they also introduce uncertainty for Illinois families who want to protect what they’ve built.
Between proposed changes to the Illinois estate tax exemption and a significant federal estate tax update, 2026 is shaping up to be a pivotal year for estate planning. Whether your estate is modest or substantial, proactive planning now can prevent unnecessary taxes, delays, and family conflict later.
Below, we break down what’s changing, what’s still uncertain, and why this is the right time to review – or create – your estate plan.
Illinois is one of the few states with its own estate tax, and the current exemption is significantly lower than the federal exemption. That gap has long caught families by surprise.
During the 2025–2026 Illinois legislative session, lawmakers introduced several bills that could dramatically change how much Illinois residents can pass on tax-free.
HB2601 (and similar HB1457)
HB1731
HB0012
Currently, Illinois’ estate tax exemption is much lower than the federal amount, meaning:
While none of these proposals are final yet, they signal a strong legislative push to modernize Illinois estate tax laws. Planning before changes take effect gives families more control and flexibility. Estate and Probate Legal Group will keep you updated on the status of these proposed Illinois estate planning changes.
At the federal level, the news is far more settled – and favorable for many families. The One Big Beautiful Bill Act (OBBBA), passed on July 4, 2025, provides relief for people worried about the end of the estate tax exemption from the Tax Cuts and Jobs Act (TCJA). However, the new law does not remove the need for careful estate planning, it just changes the rules.
Starting January 1, 2026, the federal estate and gift tax exemption will increase to a baseline of $15 million per person, indexed for inflation.
Even more importantly:
For years, estate planning at the federal level has been shaped by “use it or lose it” uncertainty. Permanency changes the conversation:
That said, federal law does not override Illinois estate taxes, which is why state-level planning remains critical.
The combination of:
Creates both opportunity and risk.
Without updated planning:
With proper planning:
Even if you already have a will or trust, it may not reflect:
Estate plans are not “set it and forget it.” Legislative changes are one of the most important reasons to review them.
Estate planning is not just about numbers – it’s about protecting your loved ones, avoiding unnecessary conflict, and preserving what you’ve worked a lifetime to build.
With major Illinois proposals and significant federal changes taking effect in 2026, now is the time to act.
👉 Schedule a consultation with an experienced Oak Brook estate planning and probate attorney to review your current plan or build one that reflects the new legal landscape.
We help individuals and families:
Don’t wait for the laws to change and hope your plan still works.
📞 Contact us today and take control of your estate planning for 2026 and beyond.
