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Estate Planning Update
| UPDATE With a properly structured estate plan, spouses may give away a total of $23,160,000 to their children federal estate tax free. Federal estate taxes are equal to 40% of the amount left in excess of the applicable exclusion amount. The law could change in 2026 to $3,500,000 per decedent. Illinois has an estate tax for estates over $4,000,000. Assets should be balanced amongst spouses as you may not rollover to other spouse. The Illinois rate starts at 28% and gradually lowers to 15% depending upon value. Proper planning can greatly reduce and/or avoid this type of exposure. The January 2020 Secure Act disallowed what we call “stretch IRA’s.” Stretch IRA’s allowed for taking distributions based upon the beneficiaries life expectancy. Now, all retirement funds from an inherited account must be taken by the end of the 10th anniversary of the account holders death. Proper planning review is critical in order to meet your goals & objectives. We can help you to secure your assets to pass on to future generations efficiently. |