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North Central IL | This topic was being discussed here recently, but I haven't found the old threads yet. With federal exemption at 15 million per person, IL still sits at 4 million, where it's been for many years. There's been talk of getting it bumped to 6 or 8, but I honestly don't see anything indicating it'll happen at this point in time. I've read articles differentiating threshold vs exemption, stating in IL if the estate is worth 4 million, there is no tax owed, but if it's a dollar over 4 million then tax is owed on the entire estate. Does anyone know if that's true? I mentioned it to the lawyer and he snapped back that it's untrue and tax would be owed on one dollar. Regarding 2032a reduced land valuations, my understanding is that their caps are way behind the times and will be limited in help.
As an example, if a farm has machinery, structures, and a thousand acres that might appraise at 15k or more, the tax owed gets kind of scary. What are you guys in IL and MN doing to plan for this? I was recently told that going to a specialized law firm and forming an llc will protect the assets. My research online hasn't made that entirely clear to me. I know Boone & Crockett and a few others were expressing ways the taxes can be avoided. I assume they mean going the llc route? Buying life insurance isn't an option. The old line, farmers are land rich and cash poor. Selling the land shouldn't have to be an option either. | |
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State Estate Tax Thresholds - Illinois? MN?
