Illinois has no inheritance tax, according to Bankrate. However, Illinois levies a state estate tax on some estates that have estimated gross values of over $4 million as of 2015, reports Nolo.Continue Reading
Although both inheritance and estate taxes are death taxes, inheritance taxes are collected from heirs who receive assets from estates, while estate taxes are levied on the value of the estate, states About.com.
All estates with values over the minimum threshold must submit estate tax returns, but not all estates pay taxes, says Nolo. Assets passed on to surviving spouses are not taxable, and deductions further reduce the amount of the estate subject to taxes. Both Illinois residents and residents of other states who own real estate or other property in Illinois must file estate tax returns. Taxable property includes bank accounts, investment accounts, retirement accounts, stocks and bonds, life insurance policy proceeds, business interests, real estate, personal property, and any assets held in revocable living trusts.
Estate taxes are payable directly to the State Treasurer's office by mail or in person, as reported by the Illinois State Treasurer. Representatives of estates can request refunds of estate taxes by sending completed and notarized Petition for Estate Tax Refund forms to the State Treasurer's office.Learn more about Taxes