No respirator plugs are likely to be pulled this month as the federal estate-tax exclusion is scheduled to jump to $3.5 million from $2 million so far this year. The new $1.5 million hike in exclusion could translate into hundreds of thousands of dollars in tax savings for heirs of wealthy benefactors who can stay alive until New Years Day.

The debatable so-called “death tax” has more and more affluent Americans keenly planning their health. In fact, many believe it’s just as important to have a good lawyer for estate planning as a cardiologist for their health care. There’s an even bigger incentive to survive until 2010 too when federal estate tax is expected to disappear entirely before reappearing again in 2011 with a $1 million exclusion.

Obama’s presidency is also expected to result in a $3.5 million exclusion in 2009 and thereafter with a top rate at 45%. The plan is ultimately expected to repeat the estate tax for 99.7% of households and the new changes would be made permanent in order to add some stability to the tax code. In the end, that just means that the rich may want to stay alive for just a few more years…