Bill > HB2601

This bill amends the Illinois Estate and Generation-Skipping Transfer Tax Act by increasing the estate tax exclusion amount from $4,000,000 to $8,000,000 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 estates valued up to $8,000,000 will be exempt from Illinois estate tax for individuals who pass away in 2026 or later, effectively reducing the tax burden on larger estates. The bill becomes effective immediately, allowing for advance planning by taxpayers and estate managers. The increase in the exclusion amount provides more generous tax treatment for estates, potentially allowing more wealth to be transferred to heirs without incurring state estate taxes. The modification is part of the ongoing evolution of estate tax laws in Illinois, which have gradually increased the exclusion amount over time to provide more favorable tax treatment for estate transfers.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2601&GAID=18&DocTypeID=HB&SessionID=114&GA=104