Legal Question in Wills and Trusts in Illinois

It would be best to meet with an attorney and tax accountant, but it sounds like his mother's estate should have included your children at the time of distribution. The inheritance right would have been your husband's and part of his estate, which by Illinois law would pass 1/2 to you and 1/2 to his children. So, to the extent that you are simply putting in place what should have occurred, then there should not be any considerations such as gift taxes. Even if you are getting into anything that does involve gift taxes, unless you have a substantial estate of your own, it is unlikely that the amounts would exceed exclusions available to you, but carefully planning the gifts may be helpful. Unfortunately, being in a new year makes that more difficult.