Illinois is one of a small number of states with its own estate tax, applied separately from the federal estate tax and at a much lower exemption. A valid Illinois will must be signed by the testator and by two witnesses, each signing in the testator's presence.
Because Illinois taxes estates at a lower threshold than the federal government, planning here matters even for households well under the federal exemption. A complete Illinois plan usually includes a will, a durable power of attorney, health care directives, and, for larger estates, a trust built with the state tax in mind. FastWill's online will builder covers Illinois's witness requirements from the start.
Does Illinois Have an Estate Tax or Inheritance Tax
Illinois has no inheritance tax, but it does charge its own state estate tax, with an exemption that is not indexed for inflation and is not portable between spouses. Recent reporting places the Illinois exemption at $4 million per person, though some sources indicate recent legislation may raise that figure for deaths on or after January 1, 2026, so confirm the exact current threshold with the Illinois Attorney General's office before relying on a specific number. This is far below the federal estate tax exemption of $15 million for 2026, which means an Illinois estate can owe state tax even when no federal tax is due, making early planning more valuable here than in most states.
How to Make a Valid Will in Illinois
Under 755 ILCS 5/4-3, a will must be in writing, signed by the testator, and signed by two credible witnesses in the testator's presence. If a witness is also named as a beneficiary, the will itself remains valid, but the gift to that witness can become void unless there are at least two other disinterested witnesses, so it is simplest to use witnesses with no financial stake in the estate.
- Be 18 or older and of sound mind
- Put the will in writing and sign it yourself
- Have two credible witnesses sign in your presence
- Name an executor and, if you have minor children, a guardian, plus a residuary clause for anything not specifically listed
What Happens if You Die Without a Will in Illinois
Without a valid will, Illinois intestate succession law generally gives the estate to a surviving spouse and children, starting with the closest relatives and moving outward to parents, siblings, and more distant relatives if there are none. This process leaves no room to name guardians for minor children or provide for stepchildren, friends, or charities, and it can create delays and confusion during an already difficult time for the family.
Trusts and Probate in Illinois
Illinois probate is handled through the circuit court in the county where the deceased lived, and given the state's comparatively low, non-portable estate tax exemption, a revocable living trust combined with lifetime gifting or other tax strategies is worth a serious look for estates that could approach the Illinois threshold. Even for more modest estates, a trust can help avoid probate delays and keep the plan private.
If your estate is well under both the state and federal thresholds, a will paired with current beneficiary designations may be all you need. Compare the two approaches in our guide to the difference between a will and a trust.
Powers of Attorney and Health Care Decisions
An Illinois Financial Power of Attorney can be general, limited to specific tasks, or durable, meaning it remains valid even if you become incapacitated. A Healthcare Power of Attorney and a Living Will work together to name a decision-maker and record your treatment preferences, and Illinois requires these to be signed while you are mentally competent, generally with two adult witnesses who are not your named health care agent.
If you have moved to or from Illinois, see our guide on updating your will, trust, and power of attorney after a move, since the estate tax exposure can change along with your state of residence.
Frequently Asked Questions
Does Illinois have its own estate tax
Yes. Illinois charges a state estate tax with an exemption reported around $4 million per person, which is not indexed for inflation and not portable between spouses; confirm the current figure before planning around it, since recent legislation may have changed it.
Does Illinois have an inheritance tax
No. Illinois has an estate tax but no separate inheritance tax on beneficiaries.
Can a beneficiary witness my Illinois will
The will stays valid, but that witness may lose their gift under the will unless there are at least two other disinterested witnesses, so it is safer to choose witnesses who inherit nothing.
Is the Illinois estate tax exemption portable between spouses
No. Unlike the federal exemption, Illinois does not allow a surviving spouse to use any unused portion of the first spouse's exemption.
What happens without a will in Illinois
Illinois intestate succession law distributes the estate to the closest relatives, generally starting with a spouse and children, without any ability to name guardians or provide for people outside the family.
Because Illinois taxes estates at a lower threshold than the federal government, and does not let spouses share the exemption, early planning pays off here more than in many other states. See FastWill's plans and pricing to get started.
