Estate and Gift Tax 2015-2016

The exemption amount for 2015 increased to $5,430,000 from the 2014 exemption amount of $5,340,000. The exemption is allowed as a unified credit.

The tax rate stays at 40% for taxable estates above the exemption amount.

The law also provides for portability of the unused spousal exemption by timely election on a Form 706.

Tax free gifts for 2015 and 2014 is $14,000 per recipient.

The American Taxpayer Relief Act of 2012 unified the estate and gift tax transfer system.

Illinois Estate Tax

The estate tax exemption for Illinois remains at $4,000,000 in 2015 and 2014. Illinois does not allow for indexing this exemption for inflation.

Illinois also does not currently recognize the portability of the spousal unused exemption.

The tax rate varies with an effective rate up to 28.5%