Primary Residence and Taxes
We are retired and have a home in Wisconsin as well as a home in Illinois which satisitifes our need for family (Illinois) as well as peace and tranquility (Wisconsin). We just learned that Illinois has an estate tax which Wisconsin does not have.
It seems as though Illinois is taxing us so much while we are alive I don’t think they should get even more when we are dead!
Is it better to establish residency in Illinois or Wisconsin since we have both residences and spend almost the same amount of time in each of them.
Thank you!
Terry Says
The Illinois estate tax begins with estates over $4 million. Rates quickly escalate. And remember, your estate includes everything you own, including your homes, your retirement accounts, and the face value of your life insurance (even if someone else is beneficiary) if YOU own the policy.
Read this article for an explanation.
But you can’t simply state that you are a Wisconsin resident to avoid Il estate taxes. You must actually live there for at least 6 months of the year, and follow other important instructions (have your will re-done in another state, give up your IL homestead exemption, and senior exemptions on property taxes, perhaps buy a burial plot in Wisconsin, change your drivers license, register to vote, etc etc.)
YOu need the advice of a good estate planning attorney to do all this. And first, you should discuss your situation with your accountant, as well.
