Tinley Park Estate Planning Attorneys | Estate Tax Lawyers, Tinley Park

In the article below, our Tinley Park estate tax lawyers explain how to take advantage of Illinois laws to enable your estate to minimize or avoid Illinois and federal estate taxes.  The Illinois estate tax exemption currently is 4 million dollars, meaning any assets above this is taxable when you pass.  Our Tinley Park estate attorneys though can create and use AB trusts to receive an additional estate tax exemption.  Using AB trusts allows the maximum tax exemption for a couple to double from 4 to 8 million dollars.

In addition to AB Trusts, Irrevocable Life Insurance Trusts can be utilized so life insurance policies are removed from your estate's taxable income.  Also discussed in greater detail are objectives of grantor-retained interest trusts, grantor-retained interest trusts and annuity trusts and their benefits to your estate.​

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Our Tinley Park estate tax lawyers discuss  what estate tax is and who has to pay these taxes. Estates are not always subject to estate tax. In Illinois, if your estate is under 4 million dollars you are not subject to state tax returns. If you do have more than 4 million dollars in your estate, then taxes on your estate are due nine months after death. The executor is the one responsible for paying for estate taxes

In this video, our Tinley Park estate tax attorneys takes the time to explain when to pay estate taxes on: inheritance taxes, state and federal estate taxes, and inherited retirement accounts. An inheritance tax is an amount of money due from a beneficiary who receives money or property from the estate of a deceased person. Inheritance taxes are due prior to receiving the inheritance check, so the amount received will already be reduced by the taxes owed. Federal tax exemption for a decedent’s estate depends on the exemption amount for the year of death. When it comes to state tax exemption, only a few states collect them, including Illinois. Similar to federal tax exemption, state tax exemption also depends on the exemption amount for the year of death. If an individual inherits a traditional IRA or 401k, he or she will have to include all distributions taken out in his or her ordinary federal income, and possibly state income, of that year. Inherited retirement assets are not taxable until they are distributed.