In this article, our Downers Grove estate tax lawyers explain ways to minimize and avoid federal and Illinois estate tax.
The Illinois estate tax exemption is $4 million. This means that any assets that you possess above $4 million will be taxable when you pass. However, attorneys can use AB trusts to allow spouses to take advantage of each other's estate tax exemptions, which can effectively raise your exemption as a couple to $8 million.
Irrevocable life insurance trusts are used by attorneys to remove the death benefit of your life insurance policies from your taxable estate.
The article goes on to describe the functions of grantor-retained annuity trusts, grantor-retained interests trusts, and grantor-retained unitrust.