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HB 2865

Relating to penalties for murder and attempted murder

2025 Regular Session Introduced by J.B. Akers and 7 co-sponsors

Phase out Illinois estate and GST taxes from 2026, reaching zero by 2030 and repealing the Act in 2031.

To House Judiciary
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Bill Summary · HB 2865

HB 2865 — Estate Tax Phase‑Out (Illinois) — Summary

Note: The provided document includes unrelated Arizona homeowners’ association language. This summary covers the Illinois HB 2865 text titled “Estate and Generation‑Skipping Transfer Tax Act” (Rep. Joe C. Sosnowski).

Purpose

Phase out Illinois’s estate tax and generation‑skipping transfer (GST) tax over a multi‑year schedule, fully eliminating the taxes for deaths/transfers on or after January 1, 2030 and repealing the Act on January 1, 2031.

Key provisions

  • Amends the Illinois Estate and Generation‑Skipping Transfer Tax Act (35 ILCS 405).
  • For estates of decedents dying:
    • Jan 1, 2026 – Dec 31, 2026: tax amount = current formula × 0.8 (80%).
    • Jan 1, 2027 – Dec 31, 2027: current formula × 0.6 (60%).
    • Jan 1, 2028 – Dec 31, 2028: current formula × 0.4 (40%).
    • Jan 1, 2029 – Dec 31, 2029: current formula × 0.2 (20%).
    • On or after Jan 1, 2030: no Illinois estate tax imposed.
  • For generation‑skipping transfers occurring:
    • Jan 1, 2026 – Dec 31, 2026: tax = current formula × 0.8.
    • Jan 1, 2027 – Dec 31, 2027: × 0.6.
    • Jan 1, 2028 – Dec 31, 2028: × 0.4.
    • Jan 1, 2029 – Dec 31, 2029: × 0.2.
    • On or after Jan 1, 2030: no Illinois GST tax imposed.
  • Repeal: The entire Act is repealed on January 1, 2031.
  • Effective date: the Act takes effect immediately upon becoming law.

Who is affected

  • Estates of decedents who had a tax situs in Illinois and beneficiaries of those estates.
  • Persons making generation‑skipping transfers with property having Illinois tax situs.
  • Executors, estate attorneys, financial planners, and Illinois Department of Revenue (revenue and administration).
  • State budget: reduced estate/GST tax receipts over 2026–2030, then elimination.

Timeline & procedural status (from bill text)

  • Introduced in the Illinois House (Rep. Joe C. Sosnowski) in early February 2025.
  • House passage and transmittal to the Senate are recorded in the document; subsequent Senate readings and committee actions occurred. (Check official legislative tracking for the current status.)

Potential impacts (high level)

  • Gradual decline, then elimination, of state estate and GST tax revenue beginning 2026.
  • Reduced tax liability for large estates and trusts; may alter estate‑planning behavior.
  • Possible competitiveness/relocation effects for high‑net‑worth residents.
  • Administrative simplification for estates after 2030; transitional compliance issues during phase‑out years.

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

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