Illinois Estate Tax
I wondered if you might have any thoughts on how to address 6he Illinois Estate Tax — 4 million exemption & 16% on the balance over $4,000,000. The Federal limit as you mentioned is 11 million Even though I do spend 3 months in Florida, do I have to declare full residence in Florida so my heirs will,not be hit with the State of IL death Tax.
Terry Says
That is just one of many reasons that people are moving out of Illinois. It is not only the high property taxes, and the soon-higher state income tax, and the on-the-horizon thought of taxing income from retirement accounts, but the ESTATE tax that makes wealthy Illinoisans run for states like Florida and Tennessee and Texas.
To be clear — the Federal estate tax currently starts when you die with assets over $11.2 million. That includes the value of your home, your life insurance if you own it (not in an irrevocable trust) and your retirement accounts. But the Illinois estate tax starts at $4 million and quickly climbs to a 16 percent rate.
That’s a pretty big motivator for leaving the state permanently, especially after you retire!
