Illinois Estate Tax
I have saved for many years as you recommended your listeners on WGN today. I can’t spend it all in the remaining lifetime. It appears I have too much considering my home is part of my estate. The Illinois Estate tax is punitive. It has not been indexed in 20 years. The state is broke and does look like the politicians will increase the threshold or eliminate it. I realize distributions and Roth conversions are not taxed in Illinois. However, many low tax states for retirement are zero income tax or very low. The risk to die in Illinois appears to worse offset than no Illinois current tax on distributions. Gifting, Charity are possible too. Should I move?
Terry Says
Especially in these cold days, I think you’d enjoy a Florida home! And you only have to be out of state for just over 6 months, establish residency in a warmer climate, change your Medicare and SS address, do a new estate plan in your new state of residence, give up your Illinois homestead exemption, and register to vote there. Voila — you avoid that huge Illinois estate tax on everything over $4 million (including your home and retirement accounts.) And leave your winter coat behind.
