Bill Text: IL HB5297 | 2011-2012 | 97th General Assembly | Introduced
Bill Title: Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, in the case of a surviving spouse of a decedent who died on or after January 1, 2012, the exclusion amount shall also include the unused exclusion amount of the predeceased spouse. Effective immediately.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2013-01-08 - Session Sine Die [HB5297 Detail]
Download: Illinois-2011-HB5297-Introduced.html
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
1 | AN ACT concerning revenue.
| ||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||
4 | Section 5. The Illinois Estate and Generation-Skipping | ||||||||||||||||||||||||
5 | Transfer Tax Act is amended by changing Section 2 as follows:
| ||||||||||||||||||||||||
6 | (35 ILCS 405/2) (from Ch. 120, par. 405A-2)
| ||||||||||||||||||||||||
7 | (Text of Section before amendment by P.A. 97-636 ) | ||||||||||||||||||||||||
8 | Sec. 2. Definitions.
| ||||||||||||||||||||||||
9 | "Federal estate tax" means the tax due to the United States | ||||||||||||||||||||||||
10 | with respect
to a taxable transfer under Chapter 11 of the | ||||||||||||||||||||||||
11 | Internal Revenue Code.
| ||||||||||||||||||||||||
12 | "Federal generation-skipping transfer tax" means the tax | ||||||||||||||||||||||||
13 | due to the
United States with respect to a taxable transfer | ||||||||||||||||||||||||
14 | under Chapter 13 of the
Internal Revenue Code.
| ||||||||||||||||||||||||
15 | "Federal return" means the federal estate tax return with | ||||||||||||||||||||||||
16 | respect to the
federal estate tax and means the federal | ||||||||||||||||||||||||
17 | generation-skipping transfer tax
return
with respect to the | ||||||||||||||||||||||||
18 | federal generation-skipping transfer tax.
| ||||||||||||||||||||||||
19 | "Federal transfer tax" means the federal estate tax or the | ||||||||||||||||||||||||
20 | federal
generation-skipping transfer tax.
| ||||||||||||||||||||||||
21 | "Illinois estate tax" means the tax due to this State with | ||||||||||||||||||||||||
22 | respect to a
taxable transfer.
| ||||||||||||||||||||||||
23 | "Illinois generation-skipping transfer tax" means the tax |
| |||||||
| |||||||
1 | due to this State
with respect to a taxable transfer that gives | ||||||
2 | rise to a federal
generation-skipping transfer tax.
| ||||||
3 | "Illinois transfer tax" means the Illinois estate tax or | ||||||
4 | the Illinois
generation-skipping transfer tax.
| ||||||
5 | "Internal Revenue Code" means, unless otherwise provided, | ||||||
6 | the Internal
Revenue Code of 1986, as
amended from time to | ||||||
7 | time.
| ||||||
8 | "Non-resident trust" means a trust that is not a resident | ||||||
9 | of this State
for purposes of the Illinois Income Tax Act, as | ||||||
10 | amended from time to time.
| ||||||
11 | "Person" means and includes any individual, trust, estate, | ||||||
12 | partnership,
association, company or corporation.
| ||||||
13 | "Qualified heir" means a qualified heir as defined in | ||||||
14 | Section 2032A(e)(1)
of the Internal Revenue Code.
| ||||||
15 | "Resident trust" means a trust that is a resident of this | ||||||
16 | State for
purposes of the Illinois Income Tax Act, as amended | ||||||
17 | from time to time.
| ||||||
18 | "State" means any state, territory or possession of the | ||||||
19 | United States and
the District of Columbia.
| ||||||
20 | "State tax credit" means:
| ||||||
21 | (a) For persons dying on or after January 1, 2003 and
| ||||||
22 | through December 31, 2005, an amount
equal
to the full credit | ||||||
23 | calculable under Section 2011 or Section 2604 of the
Internal | ||||||
24 | Revenue
Code as the credit would have been computed and allowed | ||||||
25 | under the Internal
Revenue
Code as in effect on December 31, | ||||||
26 | 2001, without the reduction in the State
Death Tax
Credit as |
| |||||||
| |||||||
1 | provided in Section 2011(b)(2) or the termination of the State | ||||||
2 | Death
Tax Credit
as provided in Section 2011(f) as enacted by | ||||||
3 | the Economic Growth and Tax Relief
Reconciliation Act of 2001, | ||||||
4 | but recognizing the increased applicable exclusion
amount
| ||||||
5 | through December 31, 2005.
| ||||||
6 | (b) For persons dying after December 31, 2005 and on or | ||||||
7 | before December 31,
2009, and for persons dying after December | ||||||
8 | 31, 2010, an amount equal to the full
credit
calculable under | ||||||
9 | Section 2011 or 2604 of the Internal Revenue Code as the
credit | ||||||
10 | would
have been computed and allowed under the Internal Revenue | ||||||
11 | Code as in effect on
December 31, 2001, without the reduction | ||||||
12 | in the State Death Tax Credit as
provided in
Section 2011(b)(2) | ||||||
13 | or the termination of the State Death Tax Credit as provided
in
| ||||||
14 | Section 2011(f) as enacted by the Economic Growth and Tax | ||||||
15 | Relief Reconciliation
Act of
2001, but recognizing the | ||||||
16 | exclusion amount of only $2,000,000, and with reduction to the | ||||||
17 | adjusted taxable estate for any qualified terminable interest | ||||||
18 | property election as defined in subsection (b-1) of this | ||||||
19 | Section. In the case of a surviving spouse of a decedent who | ||||||
20 | died on or after January 1, 2012, the exclusion amount shall | ||||||
21 | also include the unused exclusion amount of the predeceased | ||||||
22 | spouse.
| ||||||
23 | (b-1) The person required to file the Illinois return may | ||||||
24 | elect on a timely filed Illinois return a marital deduction for | ||||||
25 | qualified terminable interest property under Section | ||||||
26 | 2056(b)(7) of the Internal Revenue Code for purposes of the |
| |||||||
| |||||||
1 | Illinois estate tax that is separate and independent of any | ||||||
2 | qualified terminable interest property election for federal | ||||||
3 | estate tax purposes. For purposes of the Illinois estate tax, | ||||||
4 | the inclusion of property in the gross estate of a surviving | ||||||
5 | spouse is the same as under Section 2044 of the Internal | ||||||
6 | Revenue Code. | ||||||
7 | In the case of any trust for which a State or federal | ||||||
8 | qualified terminable interest property election is made, the | ||||||
9 | trustee may not retain non-income producing assets for more | ||||||
10 | than a reasonable amount of time without the consent of the | ||||||
11 | surviving spouse.
| ||||||
12 | "Taxable transfer" means an event that gives rise to a | ||||||
13 | state tax credit,
including any credit as a result of the | ||||||
14 | imposition of an
additional tax under Section 2032A(c) of the | ||||||
15 | Internal Revenue Code.
| ||||||
16 | "Transferee" means a transferee within the meaning of | ||||||
17 | Section 2603(a)(1)
and Section 6901(h) of the Internal Revenue | ||||||
18 | Code.
| ||||||
19 | "Transferred property" means:
| ||||||
20 | (1) With respect to a taxable transfer occurring at the | ||||||
21 | death of an
individual, the
deceased individual's gross | ||||||
22 | estate as defined in Section 2031 of the
Internal Revenue | ||||||
23 | Code.
| ||||||
24 | (2) With respect to a taxable transfer occurring as a | ||||||
25 | result of a
taxable termination as defined in Section | ||||||
26 | 2612(a) of the Internal Revenue Code,
the taxable amount |
| |||||||
| |||||||
1 | determined under Section 2622(a) of the Internal Revenue
| ||||||
2 | Code.
| ||||||
3 | (3) With respect to a taxable transfer occurring as a | ||||||
4 | result of a
taxable distribution as defined in Section | ||||||
5 | 2612(b) of the Internal Revenue Code,
the taxable amount | ||||||
6 | determined under Section 2621(a) of the Internal Revenue
| ||||||
7 | Code.
| ||||||
8 | (4) With respect to an event which causes the | ||||||
9 | imposition of an
additional estate tax under Section | ||||||
10 | 2032A(c) of the Internal Revenue Code,
the
qualified real | ||||||
11 | property that was disposed of or which ceased to be used | ||||||
12 | for
the qualified use, within the meaning of Section | ||||||
13 | 2032A(c)(1) of the Internal
Revenue Code.
| ||||||
14 | "Trust" includes a trust as defined in Section 2652(b)(1) | ||||||
15 | of the Internal
Revenue Code.
| ||||||
16 | (Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11.)
| ||||||
17 | (Text of Section after amendment by P.A. 97-636 ) | ||||||
18 | Sec. 2. Definitions.
| ||||||
19 | "Federal estate tax" means the tax due to the United States | ||||||
20 | with respect
to a taxable transfer under Chapter 11 of the | ||||||
21 | Internal Revenue Code.
| ||||||
22 | "Federal generation-skipping transfer tax" means the tax | ||||||
23 | due to the
United States with respect to a taxable transfer | ||||||
24 | under Chapter 13 of the
Internal Revenue Code.
| ||||||
25 | "Federal return" means the federal estate tax return with |
| |||||||
| |||||||
1 | respect to the
federal estate tax and means the federal | ||||||
2 | generation-skipping transfer tax
return
with respect to the | ||||||
3 | federal generation-skipping transfer tax.
| ||||||
4 | "Federal transfer tax" means the federal estate tax or the | ||||||
5 | federal
generation-skipping transfer tax.
| ||||||
6 | "Illinois estate tax" means the tax due to this State with | ||||||
7 | respect to a
taxable transfer.
| ||||||
8 | "Illinois generation-skipping transfer tax" means the tax | ||||||
9 | due to this State
with respect to a taxable transfer that gives | ||||||
10 | rise to a federal
generation-skipping transfer tax.
| ||||||
11 | "Illinois transfer tax" means the Illinois estate tax or | ||||||
12 | the Illinois
generation-skipping transfer tax.
| ||||||
13 | "Internal Revenue Code" means, unless otherwise provided, | ||||||
14 | the Internal
Revenue Code of 1986, as
amended from time to | ||||||
15 | time.
| ||||||
16 | "Non-resident trust" means a trust that is not a resident | ||||||
17 | of this State
for purposes of the Illinois Income Tax Act, as | ||||||
18 | amended from time to time.
| ||||||
19 | "Person" means and includes any individual, trust, estate, | ||||||
20 | partnership,
association, company or corporation.
| ||||||
21 | "Qualified heir" means a qualified heir as defined in | ||||||
22 | Section 2032A(e)(1)
of the Internal Revenue Code.
| ||||||
23 | "Resident trust" means a trust that is a resident of this | ||||||
24 | State for
purposes of the Illinois Income Tax Act, as amended | ||||||
25 | from time to time.
| ||||||
26 | "State" means any state, territory or possession of the |
| |||||||
| |||||||
1 | United States and
the District of Columbia.
| ||||||
2 | "State tax credit" means:
| ||||||
3 | (a) For persons dying on or after January 1, 2003 and
| ||||||
4 | through December 31, 2005, an amount
equal
to the full credit | ||||||
5 | calculable under Section 2011 or Section 2604 of the
Internal | ||||||
6 | Revenue
Code as the credit would have been computed and allowed | ||||||
7 | under the Internal
Revenue
Code as in effect on December 31, | ||||||
8 | 2001, without the reduction in the State
Death Tax
Credit as | ||||||
9 | provided in Section 2011(b)(2) or the termination of the State | ||||||
10 | Death
Tax Credit
as provided in Section 2011(f) as enacted by | ||||||
11 | the Economic Growth and Tax Relief
Reconciliation Act of 2001, | ||||||
12 | but recognizing the increased applicable exclusion
amount
| ||||||
13 | through December 31, 2005.
| ||||||
14 | (b) For persons dying after December 31, 2005 and on or | ||||||
15 | before December 31,
2009, and for persons dying after December | ||||||
16 | 31, 2010, an amount equal to the full
credit
calculable under | ||||||
17 | Section 2011 or 2604 of the Internal Revenue Code as the
credit | ||||||
18 | would
have been computed and allowed under the Internal Revenue | ||||||
19 | Code as in effect on
December 31, 2001, without the reduction | ||||||
20 | in the State Death Tax Credit as
provided in
Section 2011(b)(2) | ||||||
21 | or the termination of the State Death Tax Credit as provided
in
| ||||||
22 | Section 2011(f) as enacted by the Economic Growth and Tax | ||||||
23 | Relief Reconciliation
Act of
2001, but recognizing the | ||||||
24 | exclusion amount of only (i) $2,000,000 for persons dying prior | ||||||
25 | to January 1, 2012, (ii) $3,500,000 for persons dying on or | ||||||
26 | after January 1, 2012 and prior to January 1, 2013, and (iii) |
| |||||||
| |||||||
1 | $4,000,000 for persons dying on or after January 1, 2013, and | ||||||
2 | with reduction to the adjusted taxable estate for any qualified | ||||||
3 | terminable interest property election as defined in subsection | ||||||
4 | (b-1) of this Section. In the case of a surviving spouse of a | ||||||
5 | decedent who died on or after January 1, 2012, the exclusion | ||||||
6 | amount shall also include the unused exclusion amount of the | ||||||
7 | predeceased spouse.
| ||||||
8 | (b-1) The person required to file the Illinois return may | ||||||
9 | elect on a timely filed Illinois return a marital deduction for | ||||||
10 | qualified terminable interest property under Section | ||||||
11 | 2056(b)(7) of the Internal Revenue Code for purposes of the | ||||||
12 | Illinois estate tax that is separate and independent of any | ||||||
13 | qualified terminable interest property election for federal | ||||||
14 | estate tax purposes. For purposes of the Illinois estate tax, | ||||||
15 | the inclusion of property in the gross estate of a surviving | ||||||
16 | spouse is the same as under Section 2044 of the Internal | ||||||
17 | Revenue Code. | ||||||
18 | In the case of any trust for which a State or federal | ||||||
19 | qualified terminable interest property election is made, the | ||||||
20 | trustee may not retain non-income producing assets for more | ||||||
21 | than a reasonable amount of time without the consent of the | ||||||
22 | surviving spouse.
| ||||||
23 | "Taxable transfer" means an event that gives rise to a | ||||||
24 | state tax credit,
including any credit as a result of the | ||||||
25 | imposition of an
additional tax under Section 2032A(c) of the | ||||||
26 | Internal Revenue Code.
|
| |||||||
| |||||||
1 | "Transferee" means a transferee within the meaning of | ||||||
2 | Section 2603(a)(1)
and Section 6901(h) of the Internal Revenue | ||||||
3 | Code.
| ||||||
4 | "Transferred property" means:
| ||||||
5 | (1) With respect to a taxable transfer occurring at the | ||||||
6 | death of an
individual, the
deceased individual's gross | ||||||
7 | estate as defined in Section 2031 of the
Internal Revenue | ||||||
8 | Code.
| ||||||
9 | (2) With respect to a taxable transfer occurring as a | ||||||
10 | result of a
taxable termination as defined in Section | ||||||
11 | 2612(a) of the Internal Revenue Code,
the taxable amount | ||||||
12 | determined under Section 2622(a) of the Internal Revenue
| ||||||
13 | Code.
| ||||||
14 | (3) With respect to a taxable transfer occurring as a | ||||||
15 | result of a
taxable distribution as defined in Section | ||||||
16 | 2612(b) of the Internal Revenue Code,
the taxable amount | ||||||
17 | determined under Section 2621(a) of the Internal Revenue
| ||||||
18 | Code.
| ||||||
19 | (4) With respect to an event which causes the | ||||||
20 | imposition of an
additional estate tax under Section | ||||||
21 | 2032A(c) of the Internal Revenue Code,
the
qualified real | ||||||
22 | property that was disposed of or which ceased to be used | ||||||
23 | for
the qualified use, within the meaning of Section | ||||||
24 | 2032A(c)(1) of the Internal
Revenue Code.
| ||||||
25 | "Trust" includes a trust as defined in Section 2652(b)(1) | ||||||
26 | of the Internal
Revenue Code.
|
| |||||||
| |||||||
1 | (Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11; | ||||||
2 | 97-636, eff. 6-1-12.)
| ||||||
3 | Section 95. No acceleration or delay. Where this Act makes | ||||||
4 | changes in a statute that is represented in this Act by text | ||||||
5 | that is not yet or no longer in effect (for example, a Section | ||||||
6 | represented by multiple versions), the use of that text does | ||||||
7 | not accelerate or delay the taking effect of (i) the changes | ||||||
8 | made by this Act or (ii) provisions derived from any other | ||||||
9 | Public Act.
| ||||||
10 | Section 99. Effective date. This Act takes effect upon | ||||||
11 | becoming law.
|