Chicago Estate Tax Return Services | Form 706 & Illinois Form 700
The Illinois Estate Tax Catches Far More Families Than the Federal One. We Make Sure Yours Is Handled Right.
Most people hear that the federal estate tax exemption is now $15 million per person and assume estate tax is someone else’s problem. In Illinois, that assumption is a costly mistake. Illinois has its own estate tax with a $4 million exemption that has not moved in over a decade, no inflation adjustment, and no portability between spouses. A paid-off home, retirement accounts, and a life insurance policy can quietly push an ordinary family over the line.
Heard & Associates LLC prepares estate tax returns for Chicago families, both the federal Form 706 and the Illinois Form 700. We make sure your filings are accurate and on time, capture valuable elections like portability, and coordinate with your estate attorney so the tax side and the legal side fit together.
📞 Call (312) 810-3603 or Book Your Consultation Online today.
What Our Estate Tax Service Includes
We handle the full estate tax filing from start to finish:
The $4 Million Illinois Trap
Here is the gap that surprises Chicago families every year. The federal estate tax exemption rose to $15 million per person for 2026 and is now permanent. Illinois sits frozen at $4 million, and unlike the federal amount, it is not indexed for inflation, so more estates cross the line every year purely from rising home values and retirement balances.
The result is a large group of families who owe nothing federally but face a real Illinois bill. An estate worth $6 million owes zero to the IRS but roughly $320,000 to Illinois. An $8 million estate owes around $680,000 to the state while still falling well below the federal threshold.
Illinois also works as a cliff. Once you cross $4 million, the tax applies in a way that can feel steep relative to how far over the line you are. That makes accurate valuation and timely filing genuinely important, not a formality.
Federal and Illinois Are Two Separate Returns
This catches people off guard: clearing the federal bar tells you nothing about whether you owe Illinois. The two taxes are calculated independently, on separate returns, under separate rules.
The federal estate tax (Form 706) applies only to estates above $15 million per person, at rates up to 40%.
The Illinois estate tax (Form 700) applies to estates above $4 million, at graduated rates up to 16%, and is administered by the Illinois Attorney General.
When an estate is large enough to owe federal tax, the Illinois return generally requires a copy of the federal Form 706 attached. We prepare both so they are consistent and complete.
The No-Portability Trap for Married Couples
This is the single biggest mistake we see Illinois couples make, and it is entirely avoidable with the right return and the right planning.
Under federal law, when the first spouse dies, the surviving spouse can inherit the deceased spouse’s unused exemption through a portability election. Illinois offers no such thing. Each spouse has their own $4 million exemption, and it cannot be transferred. If the first spouse simply leaves everything to the survivor, that first $4 million Illinois exemption is lost forever, and the survivor’s estate is left with only one.
The planning solution, often a bypass or credit shelter trust, is set up by your estate attorney. Our role is to prepare the returns correctly and coordinate with that planning so the structure actually works as intended. The earlier this is addressed, the more it protects.
Why File Form 706 Even When No Federal Tax Is Owed
For married couples, there is a powerful reason to file the federal return even when the estate owes no federal tax: to elect portability and preserve the deceased spouse’s unused federal exemption for the surviving spouse. That preserved exemption can be worth millions in protection at the second death.
The election has to be made on a timely filed Form 706. Many families miss it simply because no one told them the return was worth filing. We make sure that decision is made deliberately, not lost by default.
Estate Tax Deadlines
Both the federal and Illinois estate tax returns are generally due nine months after the date of death. A six-month extension is available for each, filed on Form 4768 federally and Form 700-EXT for Illinois.
Nine months can pass quickly while an estate is still being valued and settled. We help you file an extension when needed and keep the process on track, because the Illinois tax is due on that timeline whether or not the return is finished.
What Counts Toward the Estate
Families often underestimate their estate because they think only of cash in the bank. The taxable estate is broad. For an Illinois resident, it generally includes the home, vehicles, bank and brokerage accounts, retirement accounts, business interests, and life insurance you control. Real estate located in another state is generally handled differently.
Because so much counts, and because the Illinois threshold is low and frozen, families who assumed they were safe often are not. We help you understand what is actually included before assuming you are under the line.
Why Chicago Families Choose Heard & Associates LLC
Thank you, Heard & Associates, for handling my 2025 tax return with professionalism and care. I will definitely be a returning customer next tax season! ⭐⭐⭐⭐⭐
I always seem to have so many questions and Darrel always seems to have the answers.
If you are looking for a company and person that will be honest and get your taxes completed in a timely manner… he is it.
He was thorough and extremely knowledgeable. All questions were answered clearly, deadlines were met, and the entire process was seamless. I felt confident knowing my finances were handled with accuracy and care. I highly recommend his services.
They were extremely thorough and detail-oriented, making sure everything was accurate and done in my best interest. What I appreciated most was how stress-free they made the entire process — that alone is priceless. I walked away feeling relieved, informed, and confident about my finances.
I highly recommend Darrel Heard & Associates to anyone looking for an accountant they can truly trust.
He brilliantly solved long and short term issues with immense professionalism. I felt heard, I felt protected, and educated in the process. He was generous with his time and genuinely cared about the success of my company. The service was thorough and cost effective, he has my gratitude. I highly recommend them!
Always available to answer questions and explain everything clearly.
I highly recommend them for anyone looking for accurate, efficient, and trustworthy tax services.
I had such a great experience with Heard & Associates! Mr. Heard was professional, patient, and really took the time to explain everything in a way I could understand. The company made filing my taxes so easy and even helped me get my finances more organized for the future. You can tell they truly care about their clients. I’ll definitely be coming back every year and recommending them to my friends and family!
They helped me organize my business finances, maximize deductions, and develop a tax strategy that truly fits my goals. I really appreciate their attention to detail, quick communication, and how they make what could be a stressful process feel easy and efficient.
They’ve completely transformed how my business handles its financial records. Every transaction is tracked, categorized, and explained clearly, so I always know where my money is going and what my cash flow looks like. Their bookkeeping services are not only thorough but also easy to understand — they take the time to explain reports and help identify opportunities to save or scale.
What I appreciate most is their consistency and communication. They respond quickly, provide monthly updates without being asked, and make sure all my accounts are clean and compliant come tax time. It’s rare to find a team that combines deep expertise with such genuine care for their clients’ success.
If you’re looking for an accounting firm that truly treats your business like their own — especially when it comes to keeping your books in order — I highly recommend Heard & Associates. They’re reliable, transparent, and simply excellent at what they do.
Schedule Estate Tax Return Services in Chicago
Whether you are settling an estate that may owe Illinois tax, preserving a spouse’s exemption through portability, or simply trying to understand your family’s exposure, Heard & Associates LLC prepares the returns accurately and works with your attorney so everything is done right and on time.