By KEVIN BESSLER
Illinois Radio Network
SPRINGFIELD, Ill. (IRN) — Although a bipartisan measure to raise the threshold on estate taxes stalled in the Illinois General Assembly, the legislation may not be dead yet.
Current state law says that if an estate is under a $4 million threshold, there are no estate taxes to pay, a number that critics say is too low. If the number is higher, proponents of raising the threshold said some families have been forced to sell off some or all of the family farm just to pay the estate tax.
Brian Duncan, president of the Illinois Farm Bureau, said the death of a loved one should not be a death sentence for the family farm.
“If a family is forced to sell part of that asset, then their farm is no longer viable and no longer can support the families,” said Duncan. “Then once it loses viability, it will be sold and forced into consolidation.”
Proposed legislation, known as the Family Farm Preservation Act, would raise the estate tax threshold to $6 million. The measure also looks to change the definition of a “qualified heir” to include the siblings, aunts, uncles, nieces, nephews or first cousins of the farmer.
After cutting the ribbon at the Illinois State Fair Thursday, Gov. J.B. Pritzker said the legislation is a work in progress.
“We’re still looking at it but we should do everything we can to support our farm families,” said Pritzker. “They are the backbone of our economy and they are the backbone of Illinois.”
Duncan said 96% of farms in the state are family-owned and raising the estate tax threshold would help keep that intact.
“Passing on the family farm is not just about continuing the business, it’s about preserving family heritage and a way of life,” said Duncan.
