Estate and Gift Tax
What they are and How they work
Estate and Gift Tax
An Estate Tax is when a person dies a certain amount of the possessions owns will be taxed before they are passed down.;
A Gift Tax is when a large sum of money or a large asset (ex. Land, Cars etc.) is given to another person as a gift is taxed, and the donor is responsible for paying this tax
Estate and Gift Tax rates in Illinois
The Estate Tax rate in Illinois is 16% percent and the Gift Tax rate is atleast 35% percent
Situations when these taxes will be collected
Death
when you die you're possessions will be taxed before they are handed out according to the will
Large monetary gifts
a certain amount of the money you receive will be taxed.
Extravagant gifts
when you receive very expansive gifts you'll be taxed
Just like death, these taxes are certain in Illinois
Frequently asked questions
"Where does this money go to?": it's used to help fund government operations like most taxes.