Estate tax is repealed for the tax year 2010. So everyone inheriting in 2010 can look forward to a hefty inheritance due to a big estate tax saving.

Good things don’t last long and speculations are on that federal estate tax will come back. Only fact unknown is what will be the exemption amount.

Many believe that the the Federal estate tax is scheduled to return on Jan. 1, 2011, imposing a levy of up to 55{eb914d8c00d6b744d02a9a8064b0bfd5c559be7136358887c29ad495da2b8d17} on estates valued at more than $1 million. However, a $1 million exemption would affect a lot of families considering the fact that cost of living and property values have gone up from what it was 8 to 10 years ago.

Considering the current economic conditions it seems reasonable to enact the estate tax to its 2009 level, with a $3.5 million exemption and a 45{eb914d8c00d6b744d02a9a8064b0bfd5c559be7136358887c29ad495da2b8d17} rate on assets that exceed that amount, But, whether it will be approved at this level is what the future will tell….