Estate planning basics in Illinois

State rules are general information kept current by Legacy Guard, last reviewed October 21, 2026. Your attorney's advice comes first. Figures that are adjusted each year are given for the year stated.

What this means for your plan

• Illinois taxes estates above its own threshold, which is below the federal $15 million exemption. Families near the line often plan for it with gifts, trusts, or titling. Ask your attorney whether your plan accounts for it.
• A transfer on death deed can pass your home to a named person without probate. It does not replace a trust, and it needs to be coordinated with one, but it is a simple tool worth asking about.
• Small estate rules only matter if little or nothing goes through probate. A funded trust and up to date beneficiary designations are what keep an estate small in the first place, and that is exactly what the Legacy Guard annual review checks each year.

Questions about Illinois

Does Illinois have an estate tax?

Yes. Estates over $4 million pay up to 16 percent, and once an estate crosses the line the tax applies to the whole estate, not just the amount over $4 million.

Does Illinois have an inheritance tax?

No. Illinois does not tax what an heir receives.

Is Illinois a community property state?

No. Illinois is a common law property state. Illinois probate is a court process that takes at least six months because of the creditor claim period and usually requires an attorney. A living trust is the common way to avoid it, and the $4 million estate tax threshold means many married couples need tax planning.

Does Illinois allow a transfer on death deed for real estate?

Yes. Illinois allows a transfer on death instrument for real estate.

What is the small estate limit in Illinois?

Affidavit for personal property up to $150,000 for deaths on or after August 15, 2025 (the limit was $100,000 before that). Real estate cannot pass by affidavit.