ESTATE TAX-SPOUSAL EXCLUSION

This bill amends Illinois law to allow a surviving spouse to use a deceased spouse's unused estate tax exclusion when calculating their own estate tax, starting from January 1, 2026. If a federal election is made to account for the deceased spouse's unused exclusion, the same will apply to the Illinois estate tax. This change aims to simplify tax calculations for surviving spouses.

Supporters of the bill argue that it provides much-needed relief for families dealing with estate taxes during a difficult time. By allowing the use of a deceased spouse's unused exclusion, the legislation helps ensure that more family assets can be preserved for future generations.

Critics of the bill may contend that it could lead to a decrease in state tax revenue, as more estates may qualify for exclusions. They might also argue that this change complicates the estate tax system and could disproportionately benefit wealthier families who can afford to navigate the complexities of estate planning.