Not every state has an estate tax, but for those that do, it is a major issue that must be worked around by any estate planner. In Illinois, a credit shelter trust might be a great choice the get around the $4 million tax threshold for married couples with children. The trust will allow ownership to be shifted in order to avoid any one spouse dying with more than $4 million in assets and avoid the tax altogether when the estate passes to any children. While this trust wont apply to every estate, for the right one it could avoid hundreds of thousands in Illinois estate tax and allow a more robust legacy to the next generation.
See Ian Holzhauer, Minimize Illinois Estate Tax with a Credit Shelter Trust, Tailored Estate Planning, June 26, 2015.
