In this article, our Chicago estate tax attorneys discuss some of the tools available that help to reduce taxes in Chicago estates by using irrevocable trusts. Federal and state estate taxes are placed on the assets of a deceased individual over and above that individual’s lifetime gift and estate tax exclusion limit.  

Someone who seeks to reduce the amount of taxable assets in their taxable estate can transfer ownership of existing life insurance policies to an irrevocable trust or create the trust and transfer assets and money into it. For more information how irrevocable trusts help to reduce or avoid estate taxes click on the link below.‍

Read more by our Chicago estate tax attorneys on bout how to use irrevocable life insurance trusts for your Chicago estate tax planning goals.

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Gift taxes are taxes levied on certain gifts made. These taxes are applied to the giver and not the recipient of the gift. These taxes are applied only if it is over the federal exclusion amount and the person giving it has used their lifetime exclusion. In this article, our Chicago estate tax attorneys explain gift taxes in Illinois and also on the federal level and answer questions including:

• What is gift tax
• What is the gift tax annual exclusion amount?
• What is a “present interest gift” for gift tax purposes?
• What is lifetime estate and gift tax exclusion limit?
• Does Illinois have a gift tax?
• Are transfers to trusts subject to gift tax?
• When is a gift tax return required? and,
• Are donations to charities subject to gift tax?

Read the full article by our Chicago estate tax attorneys on how gifts affect tax obligations in Chicago estates.