Recent legislation made the Illinois estate tax permanent and set exclusion amounts at $3.5 million in 2012 and $4 million in future years. While the higher limits exempt many estates, wealthier clients should consider making gifts to substantially reduce Illinois estate taxes. See full article below:
Gifts to Reduce Illinois Estate Taxes
Making Use of the Illinois Rules – Part 2: Planning for the Illinois QTIP Election
Robert J. Kolasa, CPA, LLM, Law Office of Robert J. Kolasa, Ltd.
Making Use of the Illinois Rules – Part I: Reducing Illinois Estate Taxes Through Lifetime Gifts
by Robert J. Kolasa, CPA, LLM, Law Office of Robert J. Kolasa, Ltd.
Last summer, the Illinois legislature passed a bill revising the Illinois Powers of Attorney for Property and Health Care. Such law goes into effect on July 1, 2011.
The new Power of Attorney forms (Property and Health Care) were drafted to make such forms more readable and understandable than the predecessor forms. In particular, for the Health Care Power, the new law significantly alters the second available option for directing how an agent shall act with regard to life-sustaining treatment, which may better suit the needs of some clients.
All Clients should have Health Care and Property Powers of Attorneys in place.
Furthermore, for those with existing Powers of Attorney, it may be advisable to execute new documents using the updated forms.
As always, please feel free to contact me with any questions on this matter.
Legal Article: “The New Federal & Illinois Estate Tax Laws”
Publication: Lake County Bar Association, The Docket: March 2011
Author: Robert J. Kolasa, J.D, C.P.A., LL.M. (Tax)
An analysis of the estate tax provisions contained in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Until 2013, this Act generally freezes the federal estate and gift tax exclusions at $5 million and adopts the convention of estate tax portability.
2010 Tax Act Article.robert J. Kolasa March 2011.With Attached Table
Seminar Outline: “The 2010 Tax Act has (GULP!) Arrived”
Audience: Lake County Estate Planning Council – January 13, 2011
Speaker: Robert J. Kolasa, J.D, C.P.A., LL.M. (Tax)
The 2010 Tax Act Has (GULP!) Arrived
This is the PowerPoint outline used in my seminar before a local bar association on the estate planning challenges wrought by the Tax, Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Until 2013, this Act generally freezes the federal estate and gift tax exclusions at $5 million and adopts the convention of estate tax portability.
Legal Article: ” George Steinbrenner’s Estate Tax Home Run”
Publication: Illinois State Bar Association (ISBA) Trusts & Estates Newletter, October 2010
Author: Robert J. Kolasa, J.D, C.P.A., LL.M. (Tax)
George Steinbrenner’s Estate Tax Home Run
This article explores the novel spector of estate tax repeal for 2010 due to Congressional deadlock along with the peculiar challenges of carryover basis for decedents passing in 2010.
Legal Article: “Drafting Trusts for Asset Protection”
Publication: Lake County Bar Association, The Docket, May 2006
Author: Robert J. Kolasa, J.D, C.P.A., LL.M. (Tax)
Drafting Trusts for Asset Protection
This is an article describing various asset protection techniques which can be incorporated by clients into their respective estate planning trusts. The article was based on my November 18, 2005 seminar before the Lake County Bar Association (Wills, Trust & Probate Commitee) on the same topic.
Seminar Outline: “Asset Protection”
Audience: Adult Education Classes, College of Lake County & Highland Park Adult Education
Speaker: Robert J. Kolasa, J.D, C.P.A., LL.M. (Tax)
This is a representative PowerPoint outline used in my classes on asset proction for The College of Lake County and Highland Park Adult Education classes which I taught in 2005 & 2006.
Legal Article: “The Illinois QTIP Election to the Rescue”
Publication: Illinois Bar Journal: December, 2009
Author: Robert J. Kolasa, J.D, C.P.A., LL.M. (Tax)
The Illinois QTIP Election to the Rescue
This is an article describing in detail the important adoption by the Illinois legislature of the “Illinois QTIP Election” for 2009 and future years. This estate planning technique permits optimal funding of the credit shelter trust for federal estate tax purposes, without incurring Illinois estate taxes in the estate of the first spouse to die. Technical complexities abound in implementation and administration of this technique.