The minor child reaches age 21 for custodial transfers made by irrevocable lifetime gift, will, or trust, or exercise of power of appointment.Illinois has a state income tax, structured as a flat tax on income.
The tax rate is 4.95%.
Illinois does not impose an inheritance tax.
Illinois imposes an estate tax and generation skipping transfer tax (GST tax), but provides a combined exemption of $4,000,000. The top tax rate is 16%. The estate is permitted to elect a QTIP for Illinois estate tax purposes (up to the difference between the federal and state exemption amounts).
Illinois does not impose a gift tax.
The minimum age of a person competent to make a will is 18 (or an emancipated minor).
The number of witnesses necessary to execute a will is two.
The original custodial gift may be a life insurance policy or annuity contract.
Custodial property may be invested in or used to pay premiums on (1) a policy on the minor's life if the minor's estate is the sole beneficiary, or (2) a policy on a third party in whom the minor has an insurable interest, if the minor or the custodian is the irrevocable beneficiary.
The custodial arrangement terminates when:
The minor child reaches age 21 for custodial transfers made by irrevocable lifetime gift, will, or trust, or exercise of power of appointment.
The minor child reaches age 18 in regard to other custodial transfers.
The minor child dies.
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Each state describes its own distribution pattern of how property passes to a decedent's spouse, children, parents and siblings. If no such individuals are living, state laws specify other takers among more distant ancestors before awarding property to the state through "escheat" provisions. We do not trace devolution of property beyond those noted above, but cite appropriate statutes for those interested in additional detail.
Many states refer to their distribution regime by simply stating that the heirs of predeceased individuals take "by representation." We use only the statutory verbiage, but may cite other statutory guidance when it exists.
States vary in the way they refer to descendants, using such terms as "issue" or simply children or grandchildren. We use the term "descendant," unless usage of different term adds clarity.
Some states address situations where misconduct or abuse causes forfeiture of a right to receive a share of the estate. Those interested in this information should see the state statutes.
The estate goes to the surviving spouse, as follows:
If there are no surviving descendants—100% of the estate
If there are surviving descendants—50% of the estate
If there is no surviving spouse, or if a portion of the estate does not go to the spouse:
100% (or applicable portion) to descendants, per stirpes
If there is no surviving spouse or descendant:
100% to parents, siblings, or descendants of a deceased sibling in equal parts, with descendants of deceased siblings taking per stirpes
If only one parent survives, that parent takes a double portion
If none of the above:
Intestacy laws outline further distribution steps to the level of grandparents, then kindred and descendants. See 755 ILCS §5/2‐1(e), (f), (g).
If no legally described recipient can be found, estate assets go to the state of Illinois.
Click here for more information on intestacy.
Non-qualified Annuities: Exempt from creditors of the insured if the beneficiary is a spouse, child, parent or other dependent.
Life Insurance Cash Value: Exempt from creditors of the insured if the beneficiary is a spouse, child, parent or other dependent.
Life Insurance Proceeds: Exempt from creditors of the insured if the beneficiary is a spouse, child, parent or other dependent. Exempt from creditors of the beneficiary to the extent necessary for support of beneficiary and dependents.
Digital Assets: Illinois follows the Revised Uniform Fiduciary Access to Digital Assets Act to ensure that testators can retain control of their digital property and plan for its ultimate disposition.
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