Illinois residents who have significant assets and are drafting estate planning documents will have various concerns about how their loved ones will be taxed should understand various strategies to protect their wealth. This is where wise and proactive estate planning comes in. When preparing an estate plan based on the current financial climate and how the government views its role in taxing citizens, it is also important to plan for years to come.
One issue that had been cloudy has been clarified by the Internal Revenue Service and those with vast portfolios should address that in their estate plans. The Trump Administration's new tax laws increased how much would be exempt when a person gifted it to another. For single people, it rose from $5.49 million in 2017 to $11.18 million in 2018. Couples receive double the exemption. People who had structured their estate plan around the new tax laws likely accounted for the expiration of the increase, set for 2025 when it would revert.