Business Insight presented by Navigant Law Group, LLC Estate taxes aren't only for the uber wealthy. Clients often dismiss estate taxes as a concern in estate planning, especially when they learn the federal exemption is $15 million ($30 million for couples). The response is often, "That's nothing need to worry about." Maybe. Maybe not. That is the current amount of the federal estate tax exemption. In Illinois, estates in excess of $4 million are taxed and that tax is not just on the overage. It applies to all assets. So, what is your estate and how do we calculate it? Your estate includes not only what you have in the bank and your investments. It includes all your property, such as the life insurance policies which would pay to during life but not included in the your beneficiaries, your IRA or 401K, survivor's estate. The rules related to your home, your cars, your personal these trusts are complex and require property, and certain gifts made thoughtful planning to maneuver during your lifetime. Even if you are through. not at $4 million in assets today, if your total asset value is over $3 million, you should be worried about the Illinois estate tax. It's important to work. with an experienced attorney who is familiar with these provisions and often in concert with the vital input of an accountant and an investment advisor. Not all estates over the $4 million dollar threshold are taxed in Illinois. Another simple estate tax planning In fact, some escape estate taxes strategy to consider is lifetime gifting. altogether. For example, if you decide Under current federal law, you can gift to give all your assets to charity, your up to $19,000 per person annually estate will likely not be taxed. More without triggering tax consequences. commonly, if you give all assets to You may also cover certain medical your surviving spouse, you will not be taxed at the first spouse to die. However, at the death of the survivor, estates over $4 million (that do not go to charity) will be taxed. and educational expenses tax-free, provided payments are made directly to the provider. Lifetime gifting to charities can also play a key role in planning. Putting all of this together is the object of the estate plan. That is where a revocable living trust can be useful. By using a trust There are many details to consider, created with tax planning provisions, but at a high level, a trust is one at the death of the first spouse to die, of several key tools for estate tax his or her assets can be held, in whole planning. To discuss this further, call or in part, in a separate trust that us at 847-253-8800 and let's chart is available to the surviving spouse your course. NAVIGANT LAW GROUP LLC 847-253-8800 | www.navigantlaw.com 3030 W. Salt Creek Lane, Suite 330, Arlington Heights Business Insight presented by Navigant Law Group , LLC Estate taxes aren't only for the uber wealthy . Clients often dismiss estate taxes as a concern in estate planning , especially when they learn the federal exemption is $ 15 million ( $ 30 million for couples ) . The response is often , " That's nothing need to worry about . " Maybe . Maybe not . That is the current amount of the federal estate tax exemption . In Illinois , estates in excess of $ 4 million are taxed and that tax is not just on the overage . It applies to all assets . So , what is your estate and how do we calculate it ? Your estate includes not only what you have in the bank and your investments . It includes all your property , such as the life insurance policies which would pay to during life but not included in the your beneficiaries , your IRA or 401K , survivor's estate . The rules related to your home , your cars , your personal these trusts are complex and require property , and certain gifts made thoughtful planning to maneuver during your lifetime . Even if you are through . not at $ 4 million in assets today , if your total asset value is over $ 3 million , you should be worried about the Illinois estate tax . It's important to work . with an experienced attorney who is familiar with these provisions and often in concert with the vital input of an accountant and an investment advisor . Not all estates over the $ 4 million dollar threshold are taxed in Illinois . Another simple estate tax planning In fact , some escape estate taxes strategy to consider is lifetime gifting . altogether . For example , if you decide Under current federal law , you can gift to give all your assets to charity , your up to $ 19,000 per person annually estate will likely not be taxed . More without triggering tax consequences . commonly , if you give all assets to You may also cover certain medical your surviving spouse , you will not be taxed at the first spouse to die . However , at the death of the survivor , estates over $ 4 million ( that do not go to charity ) will be taxed . and educational expenses tax - free , provided payments are made directly to the provider . Lifetime gifting to charities can also play a key role in planning . Putting all of this together is the object of the estate plan . That is where a revocable living trust can be useful . By using a trust There are many details to consider , created with tax planning provisions , but at a high level , a trust is one at the death of the first spouse to die , of several key tools for estate tax his or her assets can be held , in whole planning . To discuss this further , call or in part , in a separate trust that us at 847-253-8800 and let's chart is available to the surviving spouse your course . NAVIGANT LAW GROUP LLC 847-253-8800 | www.navigantlaw.com 3030 W. Salt Creek Lane , Suite 330 , Arlington Heights