Bill > SB0134

This bill amends the Illinois Estate and Generation-Skipping Transfer Tax Act to modify how estate tax exclusions work for married couples, specifically focusing on provisions that will take effect on or after January 1, 2026. The bill introduces the concept of an "Illinois deceased spousal exclusion amount," which allows a surviving spouse to potentially increase their estate tax exclusion by using the unused portion of their deceased spouse's exclusion. Under the new provisions, if a person makes a valid federal election to use their deceased spouse's unused federal estate tax exclusion, they can also apply a similar mechanism to their Illinois estate tax calculation. This means that the Illinois estate tax exclusion amount can be increased by the unused exclusion amount of the deceased spouse. The bill specifies different exclusion amounts for various time periods, ranging from $2,000,000 to $4,000,000 depending on the year of death, and provides a mechanism for potentially expanding this amount after 2026 by allowing the transfer of unused spousal exclusions. The goal is to provide more flexibility and potentially reduce estate tax liability for married couples in Illinois.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=134&GAID=18&DocTypeID=SB&SessionID=114&GA=104