Now that we will have a new president inhabiting the oval office come this January, there are likely to be some major overhauls to our tax system.
One modification that will be of particular importance to many local families will be any changes to the federal unified tax credit. Currently, there is a federal unified tax credit which allows for an exemption from estate taxes for the first $5.43 million of a person's gross estate and lifetime gifting added together.
During his campaign, Donald Trump promised to repeal the federal estate tax.
If the federal estate tax is eliminated, it could have signicicant effects on families who have substantial farm land and complex estate plans in an attempt to avoid the federal estate tax. It is important to note, though, that Illinois has a state estate tax as well, with an exemption of $4 million.
While there may be significant changes at the federal level, I do not expect that the Illinois estate tax will be eliminated. If you would like to set up an appointment to build or review your estate plan to determine how these changes may affect your family, please schedule your free consultation today.