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Estate Tax
Asked over 3 years ago - Illinois
Trust maker w/revocable trust and will dies, leaves all to spouse as beneficiary w/use of all trust assets, w/ chlidren as receipents of remaining trust assets at death of spouse/parent. No probate when trust maker dies. What are tax implications for trust/children when second parent dies?
Attorney answers (1)
The current Federal estate tax exclusion is $2,000,000 per person. Therefore, if that was a properly drafted husband-wife estate plan, the first $4,000,000 can pass to the children and later heirs free of estate tax. Note that the exclusion increases to $3,500,000 on January 1, 2009. That means that if the first parent dies in 2008 or earlier, and the second parent dies after 12/31/08, the first $5,500,000 can pass to the children and later heirs free of estate tax.
As for the impact of the limited (and very small) Illinois estate tax, you must talk to a lawyer of CPA licensed in Illinois.
As for the impact of the limited (and very small) Illinois estate tax, you must talk to a lawyer of CPA licensed in Illinois.
