Curated News
By: NewsRamp Editorial Staff
July 08, 2026
Illinois Families Warned of $11M Estate Tax Gap After Federal Law Change
TLDR
- Illinois families with estates over $4M can save significantly by planning around the state-federal tax gap.
- OBBBA permanently sets federal estate tax exemption at $15M/person from 2026, but Illinois keeps $4M exemption with a cliff tax.
- Kravets Law Group helps Illinois families protect hard-earned assets from state estate tax that many overlook.
- Illinois estate tax applies to the entire estate once it exceeds $4 million, unlike federal tax on excess only.
Impact - Why it Matters
This news matters because it highlights a common misconception that could cost Illinois families significant money. With the federal estate tax exemption permanently set at $15 million, many may overlook Illinois's $4 million exemption, which is not indexed for inflation and non-portable. Families with estates between $4 million and $15 million face unexpected state tax bills unless they proactively plan. Understanding this gap is crucial for protecting wealth and ensuring estate plans align with both federal and state laws.
Summary
The recent passage of the One Big Beautiful Bill Act (OBBBA) has permanently set the federal estate tax exemption at $15 million per person starting in 2026, indexed for inflation. This change eliminates the scheduled sunset reduction that would have dropped the exemption to roughly $7 million. However, Illinois families are being advised not to overlook the state's estate tax landscape, which remains unchanged. Kravets Law Group, an Illinois business, real estate, and estate law firm, is highlighting the critical $11 million gap between the federal and Illinois exemptions. While married couples can pass up to $30 million federally tax-free, Illinois imposes its own estate tax on estates exceeding $4 million, with a non-portable exemption and a cliff structure that taxes the entire estate once the threshold is crossed.
Founding attorney Daniel Kravets emphasizes that clients may mistakenly assume the federal fix resolves all estate tax concerns, but Illinois is one of only twelve states with its own estate tax. The state's $4 million exemption is not indexed for inflation and is not portable between spouses, meaning careful planning is essential to avoid losing the exemption. For estates between $4 million and $15 million, significant Illinois estate tax may apply even without federal exposure. This particularly affects business owners, farm families, and long-term homeowners with appreciated real estate. Kravets warns that the permanence of the federal exemption does not guarantee future stability, as tax laws can change, and state rules remain a moving target.
Strategies such as charitable giving, conservation easements, and structured business entities can help reduce state exposure. Kravets Law Group advises Illinois families to review their estate documents, as plans from five years ago may no longer be effective. Kravets Law Group serves clients across Illinois, Pennsylvania, and New Jersey, offering complimentary consultations to navigate the interplay between the One Big Beautiful Bill estate tax changes and Illinois law.
Source Statement
This curated news summary relied on content disributed by 24-7 Press Release. Read the original source here, Illinois Families Warned of $11M Estate Tax Gap After Federal Law Change
