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Question

Should I make lifetime gifts to reduce my Illinois estate?

Answer

Lifetime gifting can be an effective way to reduce your taxable estate because Illinois has no state gift tax. Annual exclusion gifts — currently $19,000 per recipient in 2026 — and larger gifts may reduce your estate’s value and remove future appreciation from your estate. Consult with a tax professional to understand how gifts may affect your overall estate plan.

Related FAQs

Should I use an LLC to hold Illinois real estate if I’m not an Illinois resident?

Where do I file an Illinois estate tax return?

Is a will or a trust better for reducing Illinois estate tax?
Tax Planning Estate Planning Asset Protection Trusts Tax Basics Tax Tips & Tricks Protecting Your Legacy Inherited Wealth Generation FAQs
Last Updated Aug. 17, 2026
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