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C-SUITEEstate Planning

Free Tool

Estate Tax Calculator

Model your federal and state estate tax liability under current law. Toggle exemption amounts and tax rates to see how potential changes could affect your family.

Your Estate

$
$1M$100M

Scenario Modeling

$3.5MCurrent: $15M$50M
30%Current: 40%55%

Without Planning

Gross Estate$15,000,000
Effective Exemption (couple)$30,000,000
Federal Taxable Amount$0
Federal Estate Tax$0
State Estate Tax (IL)$1,232,000
Total Estate Tax$1,232,000
Effective Tax Rate8.2%
Net to Heirs$13,768,000

With Strategic Planning

Assumes 30% of estate value removed from taxable estate through irrevocable trusts, GRATs, gifting, and other strategies.

Life insurance trusts (ILITs) and other strategies can further reduce the effective tax burden.

Estimated Total Tax$728,000
Net to Heirs$14,272,000
Estimated Tax Savings$504,000

Want a personalized analysis with specific strategies for your situation?

Get Your Custom Estate Plan Assessment

This calculator provides estimates for educational purposes only and does not constitute tax or legal advice. Actual tax liability depends on numerous factors including deductions, credits, asset valuation, and applicable state-specific rules. Consult with a qualified estate planning attorney for advice specific to your situation.

How Are Estate Taxes Calculated?

The federal estate tax applies to the transfer of property at death. Your gross estate includes everything you own: real estate, investments, business interests, retirement accounts, and life insurance proceeds. After subtracting debts, expenses, and qualified deductions, the remaining taxable estate is compared against the federal exemption.

Under current law (2026), the federal estate tax exemption is approximately $15 million per individual ($30 million for married couples using portability). Any amount above the exemption is taxed at a top rate of 40%.

In addition to federal estate tax, some states impose their own estate or inheritance taxes with significantly lower exemptions. Illinois, for example, has a state estate tax exemption of just $4 million with graduated rates up to 16%. Unlike the federal exemption, the Illinois estate tax is not a true exemption. Once your estate exceeds the $4 million threshold, every dollar of your estate is subject to tax, not just the amount above $4 million. This cliff effect means that once your estate exceeds the threshold (after available exemptions and deductions), the tax applies to the full estate value.

What happens if exemptions change?

Estate tax exemptions are set by legislation and can change with future tax law. Use the exemption slider above to model how different scenarios could affect your family.

How can I reduce my estate tax liability?

Common strategies include irrevocable trusts (which remove assets from your taxable estate), GRATs (which transfer asset growth tax-free), ILITs (which keep life insurance out of your estate), charitable planning vehicles, and strategic lifetime gifting. The right combination depends on your specific assets, family situation, and goals.

For Illinois residents, a Qualified Terminable Interest Property (QTIP) trust can be used to defer the Illinois estate tax on the first spouse's death, preserving more assets for the surviving spouse.