IL HB4017

Amends the Illinois Estate and Generation-Skipping Transfer Tax Act to change the exclusion amount calculation for persons dying on or after January 1, 2021.

For deaths on or after January 1, 2021, the exclusion amount shall be the applicable exclusion amount calculated under Section 2010 of the Internal Revenue Code, including any deceased spousal unused exclusion amount, replacing the fixed $4,000,000 exclusion that applied to deaths from January 1, 2013 through December 31, 2020.

Allows the person required to file the Illinois return to make a separate and independent marital deduction election for qualified terminable interest property under Section 2056(b)(7) of the Internal Revenue Code for Illinois estate tax purposes, independent of any federal election.

Requires trustees of trusts with qualified terminable interest property elections to not retain non-income producing assets for more than a reasonable period without the surviving spouse's consent.

Takes effect immediately upon becoming law.