Bill > SB3787

This bill amends the Illinois Estate and Generation-Skipping Transfer Tax Act to change how the exclusion amount for Illinois estate tax is calculated for individuals who die on or after January 1, 2027. Currently, the Illinois estate tax exclusion is a fixed amount of $4,000,000. However, this bill proposes to align the Illinois exclusion amount with the federal estate tax exclusion amount, which is calculated under Section 2010 of the Internal Revenue Code. This federal calculation includes adjustments for inflation and any unused exclusion amount that a deceased spouse may transfer to their surviving spouse, known as the "deceased spousal unused exclusion amount" (DSUEA). The bill specifies that this alignment will be based on the federal law as it exists on the effective date of this new Illinois law.