Estate Tax Planning

If the value of the decedent's estate makes it necessary to file estate tax returns, we can prepare and file the federal and state estate tax returns for the estate. Estate tax issues can be quite complex. When you pass away, your assets and property interests, including jointly-owned property, any real estate interests, IRAs and qualified retirement plans, and life insurance proceeds make up your taxable estate. Upon death, federal and/or state estate taxes may be imposed on an estate, depending on the total value of the assets. The amount of tax is on a sliding scale corresponding to the size of the estate.  The tax must be paid and the returns are due within nine (9) months after death.  Under the current federal estate tax law, a person has an unlimited marital deduction to a U.S. citizen spouse, and each person has a $5,000,000 federal estate tax exclusion, indexed annually for inflation.  The State of Illinois recognizes an exclusion amount of $4,000,000.

There are ways to minimize your estate tax, including gifting of property prior to death. Contact the law office of Bellock & Coogan, Ltd. to discuss estate tax minimization strategies.