Protect Your Family First — and Your Estate From Taxes: A Smarter Way to Plan in 2026 in Illinois

Illinois Estate Planning for Married Parents Starts With Family

Most married parents don’t walk into my Frankfort, Illinois estate planning office asking about tax strategies. They come in asking something much more like: “If something happens to me, will my family be okay?” They want to know their spouse will be taken care of, their kids will be provided for, and that everything won’t turn into a mess or a court process during an already hard time.

That’s exactly how good estate planning should start: with people, not paperwork.

But right behind that question is another very honest and very responsible one: “How do we make sure we don’t lose a big part of what we’ve built to taxes later?” Good estate planning in Illinois should do both. It should protect your family and protect your estate.

The Marital Deduction: A Core Part of Every Married Couple’s Estate Plan

Under current law, when one spouse dies, assets can pass to the surviving spouse without any estate tax. This is called the marital deduction. It exists for a reason. It allows the surviving spouse to stay financially stable and gives the family breathing room. For many families, that is exactly what should happen first.

Here’s the part most people don’t realize. If everything goes to the surviving spouse and stays there, then when the second spouse passes away, all of those assets are in their estate. That’s when estate taxes can become very real, especially under Illinois estate tax law.

Why the Illinois Estate Tax Exemption Really Matters

As of 2026, the federal estate tax exemption is $15 million dollars per person. But Illinois is very different. The Illinois estate tax exemption is $4 million dollars per person, and Illinois does not follow the federal system. That means many families in Will County and the surrounding areas can owe Illinois estate tax even when no federal estate tax is due.

This is why the common plan of “everything goes to my spouse and then to the kids” is often incomplete. It’s not wrong. It’s just not very thoughtful from a long-term estate planning perspective.

A Smarter, More Flexible Illinois Estate Planning Strategy: Disclaimer Planning

A smarter and more flexible approach for many married couples is something called marital disclaimer planning. In plain English, the plan is designed so your spouse is fully protected first. Nothing is taken away from them and nothing is forced. After the first spouse passes away, the surviving spouse can decide whether to keep everything or redirect some assets into a protected family trust using a legal tool called a disclaimer.

What makes this so powerful is that you don’t have to guess today what the tax laws will be, what the assets will be worth, or what your family will need. You decide when you actually know.

How This Works in Practice Under Illinois and Federal Law

After the first spouse dies, the estate may file a federal estate tax return, called IRS Form 706, even if no federal estate tax is owed, in order to properly preserve planning options. At that point, your advisors can look at the size of the estate, the Illinois estate tax exposure, and the family’s needs and decide whether it makes sense to use the first spouse’s four million dollar Illinois exemption by disclaiming assets into a trust.

During life, large gifts are tracked on IRS Form 709, which is another reason why gift planning, trust planning, and estate planning should all be coordinated as part of one thoughtful plan.

Family First. Smart Tax Planning Second.

The goal of good estate planning is simple. Take care of your spouse. Take care of your kids. And don’t give the State of Illinois or the IRS more than you have to.

Caring about estate taxes does not mean you care less about your family. It means you’re being responsible and thoughtful about what you’ve built.

How We Approach Estate Planning at Marketti Law Firm in Frankfort, Illinois

At Marketti Law Firm, I don’t believe in one-size-fits-all estate, cookie-cutter plans or complicated trust structures for the sake of complexity. I believe in clear, custom, flexible plans that protect families first and layer smart, conservative tax planning on top.

When to Review Your Estate Plan

If you’re married with kids and your estate plan is old, too simple, or you’re not really sure what would happen under Illinois law, it’s worth reviewing. And if you’ve never done proper estate planning, it’s worth doing it right the first time. Contact my office for a free consultation at 815-443-4767 or email me at allison@markettilawfirm.com.