Kravets Law Group Tracks Proposed Illinois Estate Tax Changes Under HB2601

Pending Legislation Would Double the Illinois Estate Tax Exclusion from $4 Million to $8 Million for Deaths On or After January 1, 2026

CHICAGO, IL, April 21, 2026 /24-7PressRelease/ — Kravets Law Group is monitoring House Bill 2601, pending legislation that would significantly expand the Illinois estate tax exclusion for families across the state. The Chicago estate planning law firm is prepared to advise clients on how the proposed changes—if enacted—could affect their estate plans.

HB2601 would amend the Illinois Estate and Generation-Skipping Transfer Tax Act by increasing the estate tax exclusion amount from $4 million to $8 million for persons dying on or after January 1, 2026. Introduced during the 104th General Assembly, the bill remains pending in the Illinois House. If passed, it would take effect immediately.

“This is a development that matters for a lot of Illinois families, and we’re watching it closely,” said founding attorney Daniel Kravets. “Estate planning works best when it accounts for both the law as it stands today and the changes that may be on the horizon. Our job is to help clients build plans that are solid under current law and flexible enough to take advantage of reforms like HB2601 if and when they pass.”

Illinois is one of only twelve states (plus the District of Columbia) that imposes its own estate tax, separate from the federal estate tax. Under current Illinois law, estates valued above $4 million are subject to state estate tax, and the exclusion is not portable between spouses as it is at the federal level. The proposed increase to $8 million would substantially reduce the number of Illinois estates exposed to state estate tax and bring the exclusion closer to, though still well below, the current federal exemption.

For families whose estates fall near or above the current $4 million threshold, planning tools such as credit shelter trusts, lifetime gifting, irrevocable life insurance trusts, and charitable giving strategies can help reduce exposure under today’s law while preserving flexibility for future changes. Many of these strategies require advance planning, which is why Kravets Law Group encourages clients to review their estate plans regularly rather than waiting for legislation to pass.

“Whether HB2601 becomes law or not, the fundamentals of good estate planning stay the same: know where you stand, and put a plan in place that reflects your priorities,” Kravets added. “We’re here to walk clients through that process and keep them informed as the legislative picture develops.”

Kravets Law Group is an Illinois-based law firm serving individuals, families, and businesses in Illinois, Pennsylvania, and New Jersey. Founded by attorney Daniel Kravets, the firm focuses on real estate and property law, estate planning, and business and corporate law. Raised outside Philadelphia by a Russian immigrant family, Daniel built the firm on the belief that legal representation should feel like a partnership, not a transaction. Kravets Law Group offers complimentary consultations for individuals and families who want to review their estate plans in light of current Illinois law and the proposed changes under HB2601.

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