In a word – yes. Everyone should understand the impact federal gift and estate taxes could have on their estate. Because not all states impose a state estate tax or inheritance tax, not everyone needs to worry about state level estate taxes. If you live in the State of Illinois though, you do, because Illinois does have an estate tax. Moreover, the exemption limit for Illinoi’s estate tax is lower than the federal lifetime exemption limit, meaning your estate could incur estate taxes in Illinois but not be subject to federal gift and estate taxes.