Unless the Federal Government makes a change, there will be no Federal Estate Tax (not New York State Estate Tax) for individuals dying during the year 2010. Beneficiaries of these estates will not get a stepped up basis in those assets inherited from the decedent; instead, these beneficiaries will inherit assets with a carry over basis. As the law currently stands, this is a ONE YEAR REPEAL, beginning next year, January 1, 2011, the Federal Estate Tax laws will revert to the laws in place during the year 2001 where individuals were entitled to a $1,000,000.00 credit from the Federal Estate Tax and the top tax bracket will be a 55% rate. Additionally, there are changes to the Federal Gift Tax. An individual making a taxable gift over the annual exclusion ($13,000.00) and over the lifetime exemption ($1,000,000.00) will be taxed at a 35% rate.