SimplyTrust Knowledge Base

A: Unlike an estate tax, which applies to the overall value of someone’s estate, an inheritance tax is applied to the portion each individual inherits. And the rate can vary based on who inherits and how much they receive. Iowa used to have both an inheritance tax and also an estate tax.For years, the state imposed an inheritance tax on certain beneficiaries. While spouses, parents, and lineal descendants (like children and grandchildren) were exempt, other heirs were not. Those heirs included siblings, nieces, nephews, and friends. Tax rates ranged from 5% to 15%, depending on the size of the inheritance and the relationship to the decedent. This meant that even moderate inheritances left to non-immediate family members could trigger a significant tax bill.

A: The course is designed for a diverse audience, including heads and members of multi and single-family offices, wealth managers, private bankers, and financial planners. If you're involved in managing wealth or advising families on their financial strategies, this training is tailored for you. By attending, you will be better equipped to navigate the challenges of wealth management in today's fast-paced world.

A: Iowa once imposed both an estate tax and an inheritance tax. These are different. An estate tax is based on the total value of someone’s estate. An inheritance tax, on the other hand, is based on what individual heirs receive.Iowa repealed its state estate tax in the early 2000s. Before that, the state followed what’s known as a pickup tax. This meant Iowa tied its estate tax directly to the federal tax. When the federal government phased out its credit for state estate taxes in 2005, Iowa’s estate tax effectively ended. So the answer is no: Iowa does not currently have an estate tax.However, the inheritance tax stuck around for much longer. For years, Iowa residents still had to worry about inheritance taxes—even if there was no estate tax. That changed in 2021 when the Iowa legislature passed a law phasing out the inheritance tax over five years. By January 1, 2025, the tax was fully repealed.

A: Joint tenancy is a legal arrangement in which each co-owner holds an equal share of a property or asset. Most importantly, it includes right of survivorship, meaning that when one owner passes, their share automatically transfers to the surviving owner(s) without going through probate.This arrangement can apply to real estate, bank accounts, investment accounts, and even vehicles in some states. It’s most commonly used between spouses but can be set up between any individuals.

A: A revocable trust avoids probate for assets you title into it. That’s true in Illinois and Nevada—real estate, accounts, even vehicles can pass outside court. Also, privacy improves, and timelines shrink. However, there are differences between revocable trusts in the two states.With a standard revocable (grantor) trust, trust income is taxed to you. If you live in Illinois, state income tax applies; if you live in Nevada, there’s no state income tax at all. Also, a revocable trust doesn’t change whether an estate or inheritance tax could apply. Illinois has an estate tax, Nevada doesn’t. Finally, Nevada allows very long “dynasty” timelines (up to 365 years under its rule against perpetuities). Illinois follows its own trust code and common-law principles, but does not offer Nevada’s ultra-long horizon.

A: Illinois once had an inheritance tax, but it no longer applies to recent passings. The Illinois Attorney General notes that an “Illinois Inheritance Tax Release” is needed only if a person passed before January 1, 1983—a practical marker that the old tax is a thing of the past for modern estates. For context, some states levy inheritance taxes on beneficiaries, with rates and exemptions that vary by relationship. Illinois is not on that list. Nationally, only a handful of states still use inheritance taxes. Iowa’s phase-out finished on January 1, 2025, leaving five states with an inheritance tax. (Again, not Illinois.)An inheritance tax bills the person receiving the property. That doesn’t happen here. Instead, Illinois may tax the estate itself (via its estate tax) if its value exceeds the state threshold, which is separate from federal rules. The state Attorney General’s office administers those filings and provides worksheets and instructions.

A: The Illinois estate tax affects more people than many expect (although there's no inheritance tax). If your taxable estate tops $4 million, the Illinois estate tax may apply—whether you live in the state or simply own Illinois real estate. Rates are graduated, topping out at 16%.If the gross estate plus adjusted taxable gifts exceeds $4,000,000, the representative files Illinois Form 700. That often means attaching a completed federal Form 706 (even when not required federally) so Illinois has the schedules and valuations it needs. Filings go to the Attorney General’s Estate Tax Section per the latest instructions.Because the Illinois estate tax threshold is lower than the federal level, Illinois planning focuses on that $4 million line. Many households keep a close inventory, consider how gifts affect adjusted taxable gifts. It’s also important to understand how the state QTIP election and the lack of portability change outcomes for the Illinois estate tax compared with federal rules.