An inheritance tax is a tax imposed on a person who inherits property from a deceased person. There is no federal inheritance tax, but some states have an inheritance tax.
In Illinois, there is no state inheritance tax. This means that beneficiaries who inherit property from a deceased person are not required to pay a state tax on the value of the assets they receive. However, Illinois does have an estate tax, which is a tax on the overall value of the deceased person's estate before the assets are distributed to the beneficiaries. The estate tax is only applicable if the value of the estate exceeds a certain threshold, which is subject to change. It's important to note that while there is no federal inheritance tax, there is a federal estate tax, but it also applies only to estates that exceed a significant value threshold. Beneficiaries should still be aware of other potential tax implications of their inheritance, such as capital gains tax, which may apply to certain assets that have increased in value.