Plain English Breakdown
The official status indicates the bill was re-referred to a committee as of March 21, 2025, meaning it has not yet become law despite passing chambers previously.
HB0016: Changing Illinois Estate Tax Exclusion Amount
This bill changes how much money a person can leave behind before their estate owes tax to the state of Illinois for deaths occurring on or after January 1, 2026.
What This Bill Does
- Amends the Illinois Estate and Generation-Skipping Transfer Tax Act.
- Sets the exclusion amount for persons dying on or after January 1, 2026, equal to the applicable federal limit under Section 2010 of the Internal Revenue Code.
- Includes any deceased spousal unused exclusion amount in this new calculation if a valid election is made.
- Replaces the current fixed Illinois exclusion amounts that were $4,000,000 for deaths between January 1, 2013, and December 31, 2025.
Who It Names or Affects
- Individuals who die on or after January 1, 2026.
- Estate executors responsible for filing Illinois estate tax returns under the new rules.
- Surviving spouses whose unused federal exclusion amounts may now apply to the state calculation.
Terms To Know
- Exclusion amount
- The dollar value of assets that can be transferred without being taxed by the state.
- Deceased spousal unused exclusion amount
- A portion of a deceased spouse's tax-free limit that was not used and is available to their surviving partner if an election is made.
- Internal Revenue Code Section 2010
- The federal law section that sets the national standard for estate tax exclusions.
Limits and Unknowns
- The bill ties the state limit to future changes in federal law, so no specific dollar amount is set.
- The provided text does not show if there are different rules for non-resident trusts or other specific estate types beyond what is defined.