Bill > HB1457

This bill amends the Illinois Estate and Generation-Skipping Transfer Tax Act by increasing the estate tax exclusion amount from $4,000,000 to $12,060,000 for persons dying on or after January 1, 2026. The bill modifies the existing law's definition of "state tax credit" to reflect this new higher exclusion amount. This change means that for estates valued up to $12,060,000, no Illinois estate tax will be owed, which is a significant increase from the previous $4,000,000 threshold. The bill is effective immediately, allowing for immediate implementation of the new, higher estate tax exclusion. The modification aligns with ongoing updates to estate tax regulations and provides additional tax relief for larger estates by increasing the amount of wealth that can be transferred without triggering state estate taxes in Illinois.