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HB 4202

ESTATE TAX-EXCLUSION AMT

104th Regular Session Introduced by Norine Hammond

HB 4202 raises Illinois estate tax exclusion from $4M to $12.06M, easing tax burdens for families and individuals with estates valued within this range.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 4202

Summary of HB 4202 - Estate Tax Exclusion Amendment

Bill Information:
- Bill Number: HB 4202
- Title: Estate Tax-Exclusion Amount
- Status: Filed with the Clerk by Rep. Norine K. Hammond
- Introduced: November 14, 2025
- Classification: Bill

Purpose and Intent

HB 4202 aims to amend the Illinois Estate and Generation-Skipping Transfer Tax Act by significantly increasing the exclusion amount for estate taxes. This change is intended to provide tax relief to individuals and families by raising the threshold at which estate taxes are applied.

Key Provisions

  • Increase in Exclusion Amount: The bill proposes to raise the estate tax exclusion amount from $4,000,000 to $12,060,000 for individuals who pass away on or after January 1, 2027.
  • Immediate Effectiveness: The bill is designed to take effect immediately upon becoming law, ensuring that the new exclusion amount is in place for estates of individuals who die after the specified date.

Impact

  • Affected Parties:

    • Individuals and Families: The primary beneficiaries of this bill are individuals and families with estates valued between $4 million and $12.06 million, who would otherwise be subject to Illinois estate taxes.
    • Estate Executors and Administrators: Those responsible for managing estates will need to adjust their planning and filing processes in accordance with the new exclusion amount.

  • Revenue Implications: The increase in the exclusion amount may result in a decrease in state revenue from estate taxes, as fewer estates will be subject to taxation under the new threshold.

Procedural Aspects

  • Legislative Timeline: The bill was filed on November 14, 2025, and is currently in the legislative process. The effective date is set for January 1, 2027, for the new exclusion amount to apply.
  • Sponsorship: The bill is primarily sponsored by Rep. Norine K. Hammond, indicating her support for tax relief measures in estate planning.

Conclusion

HB 4202 represents a significant change in Illinois estate tax policy, aiming to provide substantial tax relief to a larger number of estates. By increasing the exclusion amount, the bill seeks to alleviate the financial burden on families during a challenging time, while also potentially impacting state revenue from estate taxes.

Compiled from official sources — confirm details with the bill’s official record.

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