Calls continue to reform Illinois’ Estate Tax some say shuts down family farms

Illinois is one of just 12 states that still has an estate tax, and some are calling for reforms.  The estate tax is imposed on decedent’s estate, like a family farm, before distribution to heirs.  As a result, beneficiaries typically sell off parts of the farm or incur tremendous debt to pay the tax.  During Ag Day events this week, State Senator Andrew Chesney said the estate tax is wreaking havoc on family farms.

Governor J.B. Pritzker said any change to the estate tax would create a hole in the state budget.

Under current Illinois law, most farm estates must plan for the estate tax given the low threshold of 4 million dollars.  The Illinois Farm Bureau has called for raising the threshold to 6 million dollars.

Story from Illinois Radio Network