Bill > SB1688

This bill amends the Illinois Estate and Generation-Skipping Transfer Tax Act to provide more favorable tax treatment for estates containing qualified farm property. Specifically, the bill increases the estate tax exemption from $4,000,000 to $6,000,000 for estates with qualified farm property. The exemption will be automatically adjusted each year based on the Consumer Price Index (CPI), which measures changes in the prices of goods and services. The bill also expands the definition of "qualified heir" to include lineal descendants of a grandparent of the decedent and their spouses, and allows for a special use valuation of farm property that calculates the property's value without certain federal tax limitations. Additionally, the bill introduces provisions for calculating and using the deceased spousal unused exemption amount, which allows a surviving spouse to potentially use the unused estate tax exemption of their most recently deceased spouse. These changes are intended to provide more flexibility and tax relief for families with agricultural assets, particularly those with multi-generational farming operations.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1688&GAID=18&DocTypeID=SB&SessionID=114&GA=104