Ask Terry Questions Illinois estate tax exemption proposed changes

Illinois estate tax exemption proposed changes

By Terry Savage on February 04, 2024 | Wild Card

Hi Terry, there is a new bill being kicked-around in Springfield that would increase the Illinois estate tax exemption from 4MM$ to 6MM$…..but only for family farm owners. I don’t think it is fair and/or legal that such a change would be available ONLY for farmers. Your thoughts ?

Terry Says

First of all, state legislators can create any tax breaks or levies that they choose, subject to a vote. The idea of this legislation is to keep farms in families at the death of the previous generation. Most farmers are land rich, but cash poor. And legislation can and does regularly create incentives for certain activities for certain people. For example, the mortgage interest deduction was created to incentivize home ownership (certainly not “fair” to renters). And the long term capital gains lower rate was created to incent investment.

Here’s a link to the reporting on the new bill just recently introduced in ILlinois. We will see how far it gets!



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