Estate Planning in Illinois

Illinois has a state estate tax with a relatively low exemption threshold of $4 million (compared to the federal $13.61 million in 2026), making estate tax planning critically important for Illinois residents with moderate wealth. The state estate tax rate ranges from 0.8% to 16% depending on estate size. A basic will costs $500-$1,200 in Illinois, while comprehensive estate plans including revocable trusts cost $2,500-$6,000. Irrevocable life insurance trusts (ILITs) are commonly used to exclude life insurance proceeds from the taxable estate. Illinois probate is court-supervised and can take 6-18 months, driving many residents toward trust-based planning. The state recognizes Transfer on Death Instruments for real property, providing a simpler alternative to trusts for single-asset transfers. Cook County probate court has specific filing requirements that differ from downstate counties. Powers of attorney for healthcare and property are essential documents under Illinois law.