Curated News
By: NewsRamp Editorial Staff
November 02, 2026
Kravets Law Group Warns Illinois Couples of Estate Tax Portability Gap
TLDR
- Kravets Law Group advises couples to use AB trusts to capture both $4 million Illinois exemptions and avoid losing $4 million in state tax benefits.
- An AB trust splits assets at the first death, funding a bypass trust up to the exemption and passing the rest to the survivor, using both exemptions.
- Kravets Law Group helps Illinois families protect more wealth for heirs by closing the state estate tax portability gap through careful planning.
- Illinois has no estate tax portability, so an unused $4 million exemption disappears at the first death, making AB trusts a key planning tool.
Impact - Why it Matters
This news matters because many married couples in Illinois are unaware that the state's lack of estate tax portability can silently erode their wealth. With Illinois' $4 million exemption threshold—far lower than the federal $15 million—a couple with a seemingly modest $8 million estate could lose an entire $4 million exemption if the first spouse dies without proper planning. That translates to hundreds of thousands of dollars in unnecessary state estate taxes, money that could otherwise go to heirs or charitable causes. Given that homes, retirement accounts, and business interests can quickly push an estate above the threshold, proactive planning is essential. An AB trust can preserve both exemptions and maximize the inheritance passed to loved ones. For Illinois residents, this is a wake-up call to review estate plans with an attorney who understands the state-specific rules, ensuring families don't inadvertently forfeit a significant portion of their legacy.
Summary
Kravets Law Group, a Chicago-based estate law firm serving Illinois, Pennsylvania, and New Jersey, is warning married couples about a critical gap between federal and Illinois estate tax laws that could cost them millions. While federal law allows a surviving spouse to use a deceased spouse's unused estate tax exemption through portability—up to $15 million per person in 2026—Illinois has no such portability provision. The state imposes its own estate tax on estates exceeding $4 million, meaning a couple with a basic plan could lose one spouse's $4 million state exemption entirely. For example, an $8 million estate left outright to a survivor would waste the first spouse's exemption, leaving the survivor's estate well above the Illinois threshold and potentially subject to state tax.
Founding attorney Daniel Kravets emphasizes that many couples mistakenly assume federal rules apply to Illinois. "A home, retirement accounts, and a business interest can add up to more than $4 million faster than most families expect," he said. To address this, the firm recommends an AB trust in Illinois, also known as a credit shelter or bypass trust. This estate planning tool divides assets at the first death: assets up to the first spouse's exemption fund a trust for the survivor's benefit and are excluded from the survivor's estate, while remaining assets pass directly to the survivor. This approach ensures both exemptions are used, allowing up to $8 million to pass to heirs free of Illinois estate tax. Kravets notes that while an AB trust isn't right for every couple, it is often the most direct way to use both exemptions for those near or above the threshold.
The firm, founded in 2020 by Daniel Kravets, offers free consultations for couples seeking to review their estate plans. With offices in Chicago and service across three states, Kravets Law Group provides personalized legal representation in real estate, estate planning, and business law, built on the belief that legal representation should feel like a partnership, not a transaction.
Source Statement
This curated news summary relied on content distributed by 24-7 Press Release. Read the original source here, Kravets Law Group Warns Illinois Couples of Estate Tax Portability Gap
