– December is the season of giving, but quirks in the estate tax may prompt some wealthy seniors to be especially generous this year.
Without action by Congress, estate taxes are set to spike on January 1 from zero to 55 percent, the highest in a decade.
Most observers expect lawmakers to reduce the tax as part of negotiations over extending Bush-era income tax cuts, but no one can be sure that will happen, or when. Thus, giving away some wealth to reduce the size of estates may be wise, planners say.