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rise to a federal
generation-skipping transfer tax.
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"Illinois transfer tax" means the Illinois estate tax or |
the Illinois
generation-skipping transfer tax.
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"Internal Revenue Code" means, unless otherwise provided, |
the Internal
Revenue Code of 1986, as
amended from time to |
time.
|
"Non-resident trust" means a trust that is not a resident |
of this State
for purposes of the Illinois Income Tax Act, as |
amended from time to time.
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"Person" means and includes any individual, trust, estate, |
partnership,
association, company or corporation.
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"Qualified heir" means a qualified heir as defined in |
Section 2032A(e)(1)
of the Internal Revenue Code.
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"Resident trust" means a trust that is a resident of this |
State for
purposes of the Illinois Income Tax Act, as amended |
from time to time.
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"State" means any state, territory or possession of the |
United States and
the District of Columbia.
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"State tax credit" means:
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(a) For persons dying on or after January 1, 2003 and
|
through December 31, 2005, an amount
equal
to the full credit |
calculable under Section 2011 or Section 2604 of the
Internal |
Revenue
Code as the credit would have been computed and allowed |
under the Internal
Revenue
Code as in effect on December 31, |
2001, without the reduction in the State
Death Tax
Credit as |
provided in Section 2011(b)(2) or the termination of the State |
|
Death
Tax Credit
as provided in Section 2011(f) as enacted by |
the Economic Growth and Tax Relief
Reconciliation Act of 2001, |
but recognizing the increased applicable exclusion
amount
|
through December 31, 2005.
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(b) For persons dying after December 31, 2005 and on or |
before December 31,
2009, an amount equal to the full
credit
|
calculable under Section 2011 or 2604 of the Internal Revenue |
Code as the
credit would
have been computed and allowed under |
the Internal Revenue Code as in effect on
December 31, 2001, |
without the reduction in the State Death Tax Credit as
provided |
in
Section 2011(b)(2) or the termination of the State Death Tax |
Credit as provided
in
Section 2011(f) as enacted by the |
Economic Growth and Tax Relief Reconciliation
Act of
2001, but |
recognizing the exclusion amount of only $2,000,000, and with |
reduction to the adjusted taxable estate for any qualified |
terminable interest property election as defined in subsection |
(b-1) of this Section.
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(b-1) The person required to file the Illinois return may |
elect on a timely filed Illinois return a marital deduction for |
qualified terminable interest property under Section |
2056(b)(7) of the Internal Revenue Code for purposes of the |
Illinois estate tax that is separate and independent of any |
qualified terminable interest property election for federal |
estate tax purposes. For purposes of the Illinois estate tax, |
the inclusion of property in the gross estate of a surviving |
spouse is the same as under Section 2044 of the Internal |
|
Revenue Code. |
In the case of any trust for which a State or federal |
qualified terminable interest property election is made, the |
trustee may not retain non-income producing assets for more |
than a reasonable amount of time without the consent of the |
surviving spouse. |
(c) For persons dying after December 31, 2009,
the credit |
for state tax allowable under Section
2011 or Section 2604 of |
the Internal Revenue Code.
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"Taxable transfer" means an event that gives rise to a |
state tax credit,
including any credit as a result of the |
imposition of an
additional tax under Section 2032A(c) of the |
Internal Revenue Code.
|
"Transferee" means a transferee within the meaning of |
Section 2603(a)(1)
and Section 6901(h) of the Internal Revenue |
Code.
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"Transferred property" means:
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(1) With respect to a taxable transfer occurring at the |
death of an
individual, the
deceased individual's gross |
estate as defined in Section 2031 of the
Internal Revenue |
Code.
|
(2) With respect to a taxable transfer occurring as a |
result of a
taxable termination as defined in Section |
2612(a) of the Internal Revenue Code,
the taxable amount |
determined under Section 2622(a) of the Internal Revenue
|
Code.
|
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(3) With respect to a taxable transfer occurring as a |
result of a
taxable distribution as defined in Section |
2612(b) of the Internal Revenue Code,
the taxable amount |
determined under Section 2621(a) of the Internal Revenue
|
Code.
|
(4) With respect to an event which causes the |
imposition of an
additional estate tax under Section |
2032A(c) of the Internal Revenue Code,
the
qualified real |
property that was disposed of or which ceased to be used |
for
the qualified use, within the meaning of Section |
2032A(c)(1) of the Internal
Revenue Code.
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"Trust" includes a trust as defined in Section 2652(b)(1) |
of the Internal
Revenue Code.
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(Source: P.A. 93-30, eff. 6-20-03.)
|
Section 99. Effective date. This Act takes effect upon |
becoming law. |